COMPARISON OF STOCHASTIC VOLATILITY MODELS: EMPIRICAL STUDY ON KOSPI 200 INDEX OPTIONS

  • Moon, Kyoung-Sook
  • Seon, Jung-Yon
  • Wee, In-Suk
  • Yoon, Choongseok
Citations

WEB OF SCIENCE

2
Citations

SCOPUS

3

초록

We examine a unified approach of calculating the closed form solutions of option price under stochastic volatility models using stochastic calculus and the Fourier inversion formula. In particular, we review and derive the option pricing formulas under Heston and correlated Stein-Stein models using a systematic and comprehensive approach which were derived individually earlier. We compare the empirical performances of the two stochastic volatility models and the Black-Scholes model in pricing KOSPI 200 index options.

키워드

option pricingstochastic volatility modelHeston modelcorrelated Stein-Stein modelKOSPI 200 index optionCURRENCY OPTIONSPRICING-MODELSINTEREST-RATESVARIANCEMARKET
제목
COMPARISON OF STOCHASTIC VOLATILITY MODELS: EMPIRICAL STUDY ON KOSPI 200 INDEX OPTIONS
저자
Moon, Kyoung-SookSeon, Jung-YonWee, In-SukYoon, Choongseok
DOI
10.4134/BKMS.2009.46.2.209
발행일
2009-03
유형
Article
저널명
대한수학회보
46
2
페이지
209 ~ 227