symmetry of stochastic volatility governing gains and losses. Starting with stochastic differential equations for stock returns … and for stochastic volatility, we argue that the distribution of stock returns can be effectively split in two-for gains …

auxiliary two-dimensional optimal stopping problem featuring stochastic volatility, and subsequently retrieve the primal value …

/2 stochastic volatility model. The model accommodates a broad range of volatility dynamics by combining affine and inverse … Heston and 3/2 stochastic volatility models. Closed-form expressions for the conditional complex moments of the asset price … the structural flexibility of the 4/2 stochastic volatility model. Overall, the proposed framework provides an …

Statistical inference-both estimation and testing-for stochastic volatility (SV) models is known to be challenging and …