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Student-like models for risky asset with dependence
Department of Mathematics, University of Padua, Padua, Italy.
School of Mathematics, Cardiff University, Cardiff, England.
Department of Mathematics, Kyiv-Mohila University, Kyiv, Ukraine.ORCID iD: 0000-0002-7652-8157
2017 (English)In: Stochastic Analysis and Applications, ISSN 0736-2994, E-ISSN 1532-9356, Vol. 35, no 3, p. 452-464Article in journal (Refereed) Published
Abstract [en]

We present a new construction of the Student and Student-like fractal activity time model for risky asset. The construction uses the diffusion processes and their superpositions and allows for specified exact Student or Student-like marginal distributions of the returns and for flexible and tractable dependence structure. The fractal activity time is asymptotically self-similar, which is a desired feature seen in practice.

Place, publisher, year, edition, pages
Taylor & Francis, 2017. Vol. 35, no 3, p. 452-464
Keywords [en]
Risky asset model, student distribution, geometric Brownian motion, fractal activity time, reciprocal gamma diffusion, option pricing formula
National Category
Mathematics
Identifiers
URN: urn:nbn:se:oru:diva-105093DOI: 10.1080/07362994.2016.1266945ISI: 000394450600004Scopus ID: 2-s2.0-85008413112OAI: oai:DiVA.org:oru-105093DiVA, id: diva2:1744513
Available from: 2023-03-20 Created: 2023-03-20 Last updated: 2023-03-20Bibliographically approved

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Shchestyuk, Nataliya

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