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Barndorff-Nielsen and Shephard (BNS) Models

Research output: Chapter in Book/Report/Conference proceedingChapterpeer-review

Abstract

Barndorff-Nielsen and Shephard models are stochastic volatility models where the volatility follows a non-Gaussian Ornstein–Uhlenbeck type process. This article briefly reviews the construction of such models and discusses their application to option pricing and hedging.

Original languageEnglish
Title of host publicationEncyclopedia of Quantitative Finance
Publisherwiley
Pages1-3
Number of pages3
ISBN (Electronic)9780470061602
ISBN (Print)9780470057568
DOIs
Publication statusPublished - 1 Jan 2010

Keywords

  • Ornstein–Uhlebneck type process
  • option pricing
  • stochastic volatility

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