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Main Authors: Gatheral, Jim, Radoičić, Radoš
Format: Preprint
Published: 2023
Subjects:
Online Access:https://arxiv.org/abs/2310.09181
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author Gatheral, Jim
Radoičić, Radoš
author_facet Gatheral, Jim
Radoičić, Radoš
contents Previously, in [GR19], we derived a rational approximation of the solution of the rough Heston fractional ODE in the special case λ= 0, which corresponds to a pure power-law kernel. In this paper we extend this solution to the general case of the Mittag-Leffler kernel with λ\geq 0. We provide numerical evidence of the convergence of the solution.
format Preprint
id arxiv_https___arxiv_org_abs_2310_09181
institution arXiv
publishDate 2023
record_format arxiv
spellingShingle A generalization of the rational rough Heston approximation
Gatheral, Jim
Radoičić, Radoš
Computational Finance
Previously, in [GR19], we derived a rational approximation of the solution of the rough Heston fractional ODE in the special case λ= 0, which corresponds to a pure power-law kernel. In this paper we extend this solution to the general case of the Mittag-Leffler kernel with λ\geq 0. We provide numerical evidence of the convergence of the solution.
title A generalization of the rational rough Heston approximation
topic Computational Finance
url https://arxiv.org/abs/2310.09181