Jump

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To jump or not to jump: The Bereitschaftspotential required to jump into 192-meter abyss

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Although historically models in mathematical finance were based on Brownian motion and thus are models with continuous price paths, jump processes play now a key role across all areas of finance (see e.g. [5]). One reason for this move into a new class of processes is that because of their distributional properties diffusions in many cases cannot provide a realistic picture of empirically obser...

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Jump Intensities, Jump Sizes, and the Relative Stock Price Level

Large stock price movements are modeled as jumps in the stochastic processes of stock prices. In the current literature, the jump intensity is typically specified in models as a function of the current diffusive volatility and past jump intensities, while the jump size is assumed to be independent of the jump intensity. We use a nonparametric jump detection test to identify jumps in several sto...

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ژورنال

عنوان ژورنال: The Iowa Review

سال: 2011

ISSN: 0021-065X,2330-0361

DOI: 10.17077/0021-065x.7033