Efficient Asian option pricing under regime switching jump diffusions and stochastic volatility models

JL Kirkby, D Nguyen - Annals of Finance, 2020 - Springer
Utilizing frame duality and a FFT-based implementation of density projection we develop a
novel and efficient transform method to price Asian options for very general asset dynamics …

Short-maturity asymptotics for VIX and European options in local-stochastic volatility models

D Pirjol, X Wang, L Zhu - arxiv preprint arxiv:2407.16813, 2024 - arxiv.org
We derive the short-maturity asymptotics for European and VIX option prices in local-
stochastic volatility models where the volatility follows a continuous-path Markov process …

Asymptotics for the Laplace transform of the time integral of the geometric Brownian motion

D Pirjol, L Zhu - Operations Research Letters, 2023 - Elsevier
We present an asymptotic result for the Laplace transform of the time integral of the
geometric Brownian motion F (θ, T)= E [e− θ XT] with XT=∫ 0 T e σ W s+(a− 1 2 σ 2) sds …

Asymptotics for the discrete-time average of the geometric Brownian motion and Asian options

D Pirjol, L Zhu - Advances in Applied Probability, 2017 - cambridge.org
The time average of geometric Brownian motion plays a crucial role in the pricing of Asian
options in mathematical finance. In this paper we consider the asymptotics of the discrete …

Short maturity Asian options for the CEV model

D Pirjol, L Zhu - Probability in the Engineering and Informational …, 2019 - cambridge.org
We present a rigorous study of the short maturity asymptotics for Asian options with
continuous-time averaging, under the assumption that the underlying asset follows the …

Asymptotics for volatility derivatives in multi-factor rough volatility models

C Lacombe, A Muguruza, H Stone - Mathematics and financial economics, 2021 - Springer
We study the small-time implied volatility smile for Realised Variance options, and
investigate the effect of correlation in multi-factor models on the linearity of the smile. We …

An efficient and stable method for short maturity Asian options

R Chatterjee, Z Cui, J Fan, M Liu - Journal of Futures Markets, 2018 - Wiley Online Library
In this paper, we develop a Markov chain‐based approximation method to price arithmetic
Asian options for short maturities under the case of geometric Brownian motion. It has the …

Stochastic approximations for financial risk computations

F Bourgey - 2020 - theses.hal.science
In this thesis, we investigate several stochastic approximation methods for both the
computation of financial risk measures and the pricing of derivatives. As closed-form …

A Yosida's parametrix approach to Varadhan's estimates for a degenerate diffusion under the weak Hörmander condition

S Pagliarani, S Polidoro - Journal of Mathematical Analysis and …, 2023 - Elsevier
We adapt and extend Yosida's parametrix method, originally introduced for the construction
of the fundamental solution to a parabolic operator on a Riemannian manifold, to derive …

On the implied volatility of Asian options under stochastic volatility models

E Alòs, E Nualart, M Pravosud - Applied Mathematical Finance, 2023 - Taylor & Francis
In this paper, we study the short-time behaviour of the at-the-money implied volatility for
arithmetic Asian options with fixed strike price. The asset price is assumed to follow the …