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Pricing with Splines

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Author Info
Christian Gourieroux
Alain Monfort

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Abstract

Le principe de valorisation par facteur d’escompte stochastique exponentiel affine est appliqué aux familles de lois de Laplace asymétriques. On montre que les lois risque-neutres appartiennent à la même famille et on obtient une formule fermée pour le prix d’une option européenne. La formule contient davantage de paramètres que la formule de Black Scholes, à savoir un paramètre de position et un paramètre de queue. Cette approche est généralisée au cas de probabilité et de facteurs d’escompte stochastique de type exponentielle spline. Enfin la cohérence temporelle est introduite par une spécification markovienne.

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File URL: http://www.adres.ens.fr/anciens/n82/vol82-01.pdf
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Publisher Info
Article provided by ADRES in its journal Annales d'Economie et de Statistique.

Volume (Year): (2006)
Issue (Month): 82 (Avril-Juin)
Pages: 01
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Handle: RePEc:adr:anecst:y:2006:i:82:p:01

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Web page: http://www.adres.ens.fr/
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References listed on IDEAS
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  1. Bates, David S, 1996. "Jumps and Stochastic Volatility: Exchange Rate Processes Implicit in Deutsche Mark Options," Review of Financial Studies, Oxford University Press for Society for Financial Studies, vol. 9(1), pages 69-107. [Downloadable!] (restricted)
  2. Ball, Clifford A & Torous, Walter N, 1985. " On Jumps in Common Stock Prices and Their Impact on Call Option Pricing," Journal of Finance, American Finance Association, vol. 40(1), pages 155-73, March. [Downloadable!] (restricted)
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This page was last updated on 2009-12-24.


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