Nomikos, Nikos K.; Kyriakou, Ioannis; Papapostolou, Nikos C. - In: Transportation Research Part E: Logistics and … 51 (2013) C, pp. 82-94
dynamics to a diffusion model overlaid with jumps of random magnitude and arrival. Then, we develop a valuation framework for … computational efficiency of the proposed pricing scheme, we calibrate the jump diffusion model using market quotes of options on the …