Kristensen, Dennis; Mele, Antonio - School of Economics and Management, University of Aarhus - 2009
This paper develops a new systematic approach to implement approximate solutions to asset pricing models within multi … approximate solutions to asset
pricing models within multi-factor di�usion environments. For any model lacking a closed-
form … stochastic volatility, volatility contracts and the term-structure of
interest rates.
Keywords: Asset pricing; stochastic …