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Asymptotic analysis of stock price densities and implied volatilities in mixed stochastic models  

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In this paper, we obtain sharp asymptotic formulas with error estimates for the Mellin con- volution of functions de ned on (0;1), and use these formulas to characterize the asymptotic behavior of marginal distribution densities of stock price processes in mixed stochastic models. Special examples of mixed models are jump-di usion models and stochastic volatility models with jumps. We apply our general results to the Heston model with double exponential jumps, and make a detailed analysis of the asymptotic behavior of the stock price density, the call option pricing function, and the implied volatility in this model. We also obtain similar results for the Heston model with jumps distributed according to the NIG law.

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GULISASHVILI, Archil, VIVES I SANTA EULÀLIA, Josep. Asymptotic analysis of stock price densities and implied volatilities in mixed stochastic models  . _Siam Journal On Financial Mathematics_. 2015. Vol. 6, núm. 158-188. [consulta: 24 de gener de 2026]. ISSN: 1945-497X. [Disponible a: https://hdl.handle.net/2445/65106]

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