Malliavin calculus in finance theory and practice / Elisa Al©øs, David Garcia Lorite.

Author/creator Al©øs, Elisa
Other author Lorite, David Garcia.
Format Electronic
EditionFirst edition.
Publication InfoBoca Raton : CRC Press, Taylor & Francis Group, 2021.
Description1 online resource
Supplemental ContentFull text available from Taylor & Francis eBooks
Subjects

SeriesChapman & Hall/CRC financial mathematics series
Abstract "Malliavin Calculus in Finance: Theory and Practice aims to introduce the study of stochastic volatility (SV) models via Malliavin Calculus. Malliavin calculus has had a profound impact on stochastic analysis. Originally motivated by the study of the existence of smooth densities of certain random variables, it has proved to be a useful tool in many other problems. In particular, it has found applications in quantitative finance, as in the computation of hedging strategies or the efficient estimation of the Greeks. The objective of this book is to offer a bridge between theory and practice. It shows that Malliavin calculus is an easy-to-apply tool that allows us to recover, unify, and generalize several previous results in the literature on stochastic volatility modeling related to the vanilla, the forward, and the VIX implied volatility surfaces. It can be applied to local, stochastic, and also to rough volatilities (driven by a fractional Brownian motion) leading to simple and explicit results. Features Intermediate-advanced level text on quantitative finance, oriented to practitioners with a basic background in stochastic analysis, which could also be useful for researchers and students in quantitative finance Includes examples on concrete models such as the Heston, the SABR and rough volatilities, as well as several numerical experiments and the corresponding Python scripts Covers applications on vanillas, forward start options, and options on the VIX. The book also has a Github repository with the Python library corresponding to the numerical examples in the text. The library has been implemented so that the users can re-use the numerical code for building their examples. The repository can be accessed here: https://bit.ly/2KNex2Y"-- Provided by publisher.
General note"A Chapman & Hall book."
Bibliography noteIncludes bibliographical references and index.
Access restrictionAvailable only to authorized users.
Technical detailsMode of access: World Wide Web
Source of descriptionDescription based on print version record and CIP data provided by publisher.
Issued in other formPrint version: Al©øs, Elisa. Malliavin calculus in finance First edition. CRC Press, Taylor & Francis Group, 2021 9780367893446
Genre/formElectronic books.
LCCN 2021000978
ISBN9781003018681 (ebook)
ISBN(hardback)
ISBN(pbk)

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