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Exponential Lévy Models

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

Abstract

Exponential Lévy models generalize the classical Black and Scholes setup by allowing the stock prices to jump while preserving the independence and stationarity of returns. This article introduces most common examples of such models and discusses the pricing and hedging of options in this framework.

Original languageEnglish
Title of host publicationEncyclopedia of Quantitative Finance
Publisherwiley
Pages1-6
Number of pages6
ISBN (Electronic)9780470061602
ISBN (Print)9780470057568
DOIs
Publication statusPublished - 1 Jan 2010

Keywords

  • Fourier transform option pricing
  • Lévy process
  • smile modeling

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