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Empirical Option Pricing Models
Working paper   Open access

Empirical Option Pricing Models

David Bates
NBER working paper series, Vol.29554
National Bureau of Economic Research
12/2021
DOI: 10.3386/w29554
url
https://doi.org/10.3386/w29554View
Open Access

Abstract

This paper is an overview of empirical options research, with primary emphasis on research into systematic stochastic volatility and jump risks relevant for pricing stock index options. The paper reviews evidence from time series analysis, option prices and option price evolution regarding those risks, and discusses required compensation.

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