RE: Merton76Process

Posted by Neil P Firth on
URL: http://quantlib.414.s1.nabble.com/Merton76Process-tp3338p3341.html

Daniel,

No, I'm not looking at stochastic volatility. I have had a brief look at
the PIDE formulations for American option pricing on jump processes, but
I'm not working on that directly either!

Best Regards,
Neil

---------------------------------------------------
  Neil Firth
  Brasenose College Oxford OX1 4AJ United Kingdom
  [hidden email]
  http://www.maths.ox.ac.uk/~firth
---------------------------------------------------
On Mon, 13 Sep 2004, Daniel J. Duffy wrote:

> Neil,
> Are you doing any work on Heston sto. vol. and PIDE (not 100,000 miles (km)) away from current topic?
>
> Cheers
>
> Daniel
>
>
> ________________________________
>
> From: [hidden email] on behalf of Neil P Firth
> Sent: Mon 13/09/2004 18:11
> To: Penschke, Walter
> Cc: [hidden email]
> Subject: Re: [Quantlib-users] Merton76Process
>
>
>
> Hello,
>
> Lots of interesting financial models, such as variance gamma and normal
> inverse gamma, are pure jump models, so any redesign should take them into
> consideration. Bringing in a LevyProcess class, with drift, diffusion and
> jump methods might tidy things up. However, that is quite a large
> change and might cause more problems than it solves.
>
> Neil
>
> ---------------------------------------------------
>   Neil Firth
>   Brasenose College Oxford OX1 4AJ United Kingdom
>   Office: 01865 280616
>   [hidden email]
>   http://www.maths.ox.ac.uk/~firth
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