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The correlated stochastic volatility models constitute a natural extension of the Black and Scholes-Merton framework: here the volatility is not a constant, but a stochastic process correlated with the price log-return one. At present,…

统计金融 · 定量金融 2008-12-02 E. Cisana , L. Fermi , G. Montagna , O. Nicrosini

The main purpose of this chapter is to present some theoretical aspects of parametric estimation of L\'evy processes based on high-frequency sampling, with a focus on infinite activity pure-jump models. Asymptotics for several classes of…

统计理论 · 数学 2014-09-02 Hiroki Masuda

It is known that Heston's stochastic volatility model exhibits moment explosion, and that the critical moment $s_+$ can be obtained by solving (numerically) a simple equation. This yields a leading order expansion for the implied volatility…

证券定价 · 定量金融 2010-11-15 P. Friz , S. Gerhold , A. Gulisashvili , S. Sturm

Refining previously known estimates, we give large-strike asymptotics for the implied volatility of Merton's and Kou's jump diffusion models. They are deduced from call price approximations by transfer results of Gao and Lee. For the Merton…

证券定价 · 定量金融 2014-01-10 Stefan Gerhold , Johannes F. Morgenbesser , Axel Zrunek

We investigate the concept of an asymptotic e-process, which is a doubly-indexed stochastic process $(E_{m,n})_{m,n\in\mathbb{N}}$ that possesses, asymptotically for an approximation index $m\to\infty$, the properties of an e-process along…

统计理论 · 数学 2026-05-25 Pierre-François Massiani , Sebastian Schulze , Mattes Mollenhauer

We solve the pricing problem for perpetual American puts and calls on dividend-paying assets. The dependence of a dividend process on the underlying stochastic factor is fairly general: any non-decreasing function is admissible. The…

其他凝聚态物理 · 物理学 2008-12-02 Svetlana Boyarchenko , Sergei Levendorskii

Confidence intervals and joint confidence sets are constructed for the nonparametric calibration of exponential L\'evy models based on prices of European options. To this end, we show joint asymptotic normality in the spectral calibration…

统计金融 · 定量金融 2020-05-26 Jakob Söhl

We introduce the notion of continuously invertible volatility models that relies on some Lyapunov condition and some regularity condition. We show that it is almost equivalent to the ability of the volatilities forecasting using the…

统计理论 · 数学 2011-11-07 Olivier Wintenberger , Sixiang Cai

We study the asymptotic behaviour of additive functionals of random walks in random scenery. We establish bounds for the moments of the local time of the Kesten and Spitzer process.These bounds combined with a previous moment convergence…

动力系统 · 数学 2021-01-05 Françoise Pene

A variety of estimators for the parameters of the Generalized Pareto distribution, the approximating distribution for excesses over a high threshold, have been proposed, always assuming the underlying data to be independent. We recently…

应用统计 · 统计学 2016-05-26 Lukas Martig , Jürg Hüsler

We study the dependence of volatility on the stock price in the stochastic volatility framework on the example of the Heston model. To be more specific, we consider the conditional expectation of variance (square of volatility) under fixed…

证券定价 · 定量金融 2011-07-29 Mikhail Martynov , Olga Rozanova

This paper is concerned with asymptotic behavior of a variety of functionals of increments of continuous semimartingales. Sampling times are assumed to follow a rather general discretization scheme. If an underlying semimartingale is…

概率论 · 数学 2024-10-04 Michael Levine , Xiaoguang Wang , Jian Frank Zou

We consider discrete-time observations of a continuous martingale under measurement error. This serves as a fundamental model for high-frequency data in finance, where an efficient price process is observed under microstructure noise. It is…

统计理论 · 数学 2011-05-12 Markus Reiß

A third-order approximation for close-to-the-money European option prices under an infinite-variation CGMY L\'{e}vy model is derived, and is then extended to a model with an additional independent Brownian component. The asymptotic regime…

证券定价 · 定量金融 2017-11-23 José E. Figueroa-López , Ruoting Gong , Christian Houdré

The formation of price in a financial market is modelled as a chain of Ising spin with three fundamental figures of trading. We investigate the time behaviour of the model, and we compare the results with the real EURO/USD change rate. By…

数据分析、统计与概率 · 物理学 2008-12-02 Antonella Greco , Luca Sorriso-Valvo , Vincenzo Carbone

In exponential semi-martingale setting for risky asset we estimate the difference of prices of options when initial physical measure $P$ and corresponding martingale measure $Q$ change to $\tilde{P}$ and $\tilde{Q}$ respectively. Then, we…

概率论 · 数学 2018-03-14 L. Vostrikova

We study the estimation of leverage effect and volatility of volatility by using high-frequency data with the presence of jumps. We first construct spot volatility estimator by using the empirical characteristic function of the…

统计方法学 · 统计学 2026-03-03 Qiang Liu , Zhi Liu , Wang Zhou

Scattering moments provide nonparametric models of random processes with stationary increments. They are expected values of random variables computed with a nonexpansive operator, obtained by iteratively applying wavelet transforms and…

统计方法学 · 统计学 2015-03-17 Joan Bruna , Stéphane Mallat , Emmanuel Bacry , Jean-François Muzy

Most of the existing methods for pricing Asian options are less efficient in the limit of small maturities and small volatilities. In this paper, we use the large deviations theory for the analysis of short-maturity Asian options. We…

证券定价 · 定量金融 2024-09-17 Humayra Shoshi , Indranil SenGupta

Dynamic hedging of an European option under a general local volatility model with small linear transaction costs is studied. A continuous control version of Leland's strategy that asymptotically replicates the payoff is constructed. An…

数理金融 · 定量金融 2014-08-26 Jiatu Cai , Masaaki Fukasawa