Equilibrium Asset and Option Pricing under Jump-Diffusion Model with Stochastic Volatility

We study the equity premium and option pricing under jump-diffusion model with stochastic volatility based on the model in Zhang et al. 2012. We obtain the pricing kernel which acts like the physical and risk-neutral densities and the moments in the economy. Moreover, the exact expression of option...

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Bibliographic Details
Main Authors: Xinfeng Ruan, Wenli Zhu, Shuang Li, Jiexiang Huang
Format: Article
Language:English
Published: Wiley 2013-01-01
Series:Abstract and Applied Analysis
Online Access:http://dx.doi.org/10.1155/2013/780542
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