Tony Sit

  1. Parameter Estimation using Empirical Likelihood combined with Market Information.

    Authors: Zhiliang Ying, Steven Kou, Tony Sit
    Subjects: Methodology
    Abstract

    During the last decade Levy processes with jumps have received increasing
    popularity for modelling market behaviour for both derviative pricing and risk
    management purposes. Chan et al. (2009) introduced the use of empirical
    likelihood methods to estimate the parameters of various diffusion processes
    via their characteristic functions which are readily avaiable in most cases.
    Return series from the market are used for estimation.

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