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We analyze the properties of the implied volatility, the commonly used volatility estimator by direct option price inversion. It is found that the implied volatility is subject to a systematic bias in...
After a quick review of superpositions of OU (supOU) processes, integrated supOU processes and the supOU SV model we estimate these processes by using the generalized method of moments. We show that t...
We introduce the notion of continuously invertible volatility models that relies on some Lyapunov condition and some regularity condition.
High-frequency data observed on the prices of financial assets are commonly modeled by diffusion processes with micro-structure noise, and realized volatility-based methods are often used to estimat...
In this paper we derive lower bounds in minimax sense for estimation of the instantaneous volatility if the diffusion type part cannot be observed directly but under some additional Gaussian noise. ...
An Markov chain Monte Carlo simulation method based on a two stage delayed rejection Metropolis-Hastings algorithm is proposed to estimate a factor multivariate stochastic volatility model. The firs...
The basic model for high-frequency data in finance is considered, where an efficient price process is observed under microstructure noise. It is shown that this nonparametric model is in Le Cam’s se...
Let X be the unique solution started from x0 of the stochastic differential equation dXt = µ(t;Xt)dBt +b(t;Xt)dt with B a standard Brownian motion. We consider an approximation of the volatili...
The Extended Generalized Inverse Gaussian Distribution for Log-Linear and Stochastic Volatility Models。
This note continues investigation of randomness-type properties emerging in idealized financial markets with continuous price processes. It is shown, without making any probabilistic assumptions, that...
This paper deals with the filtering problem for a class of discrete time stochastic volatility models in which the disturbances have rational probability density functions. This includes the Cauchy ...
In this paper we consider two processes driven by diffusions and jumps. The jump components are L´evy processes and they can both have finite activity and infinite activity. Given discrete obse...
The Sharpe ratio, which is defined as the ratio of the excess expected return of an investment to its standard deviation, has been widely cited in the financial literature by researchers and practit...

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