We propose a simple model, based on Monte Carlo simulations, for studying the effects of changes in the environment on the adaptation and extinction of evolving species. We show that the geological data of climatic changes are well described by Levy-stable distributions. This leads, in our...

In this paper we discuss subdiffusive mechanism for the description of some stock markets. We analyse the fractional Black–Scholes model in which the price of the underlying instrument evolves according to the subdiffusive geometric Brownian motion. We show how to efficiently estimate the...

The Heston model stands out from the class of stochastic volatility (SV) models mainly for two reasons. Firstly, the process for the volatility is nonnegative and mean-reverting, which is what we observe in the markets. Secondly, there exists a fast and easily implemented semi-analytical...