Viscosity solutions and american option pricing in a stochastic volatility model of the ornstein-uhlenbeck type

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  • who: Ornstein-Uhlenbeck, Type and Alexandre F., Roch from the Departement Mathematik, ETH Zuu0308rich, Zuu0308rich, Switzerland have published the Article: Viscosity Solutions and American Option Pricing in a Stochastic Volatility Model of the Ornstein-Uhlenbeck Type, in the Journal: (JOURNAL) of 14/06/2010
  • what: The authors characterize the value of such derivatives as the unique viscosity solution of an integral-partial differential equation when the payoff function satisfies a Lipschitz condition. In this model, the volatility of the asset is described by an Ornstein-Uhlenbeck-type process with a pure jump Lu00e9vy process acting . . .

     

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