Rujivan, Sanae; Lim, Seyha; Thamrongrat, Nopporn; … - In: Risks : open access journal 14 (2026) 3, pp. 1-21
This paper develops a unified analytical framework for pricing discretely sampled volatility-average swaps under the 4/2 stochastic volatility model. The model accommodates a broad range of volatility dynamics by combining affine and inverse-affine components in the instantaneous volatility...