Abstract

In Chap. 1, we have presented the real valued affine diffusions. Basically, these diffusions are either the Ornstein-Uhlenbeck process or the Cox-Ingersoll-Ross process. This chapter presents the general framework for affine diffusions in a multidimensional context. In the first section, we give the definition and the main properties of affine diffusions. Then, we present two examples of vector valued affine processes that are of practical use in finance.

Original languageEnglish
Title of host publicationBocconi and Springer Series
PublisherSpringer International Publishing
Pages93-121
Number of pages29
DOIs
Publication statusPublished - 1 Jan 2015

Publication series

NameBocconi and Springer Series
Volume6
ISSN (Print)2039-1471
ISSN (Electronic)2039-148X

Fingerprint

Dive into the research topics of 'The Heston Model and Multidimensional Affine Diffusions'. Together they form a unique fingerprint.

Cite this