pith. sign in

arxiv: cond-mat/0404684 · v1 · submitted 2004-04-28 · ❄️ cond-mat.other · cond-mat.stat-mech· q-fin.PR

Option pricing with fractional volatility

classification ❄️ cond-mat.other cond-mat.stat-mechq-fin.PR
keywords optionpricingvolatilityfractionalmodeldatadrivenempirical
0
0 comments X
read the original abstract

Based on empirical market data, a stochastic volatility model is proposed with volatility driven by fractional noise. The model is used to obtain a risk-neutrality option pricing formula and an option pricing equation.

This paper has not been read by Pith yet.

discussion (0)

Sign in with ORCID, Apple, or X to comment. Anyone can read and Pith papers without signing in.