Rough volatility dynamics in commodity markets

Fuente: arXiv
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Autores principales: Daluiso, Roberto, Folgar-Cameán, Héctor, Pallavicini, Andrea, Vázquez, Carlos
Formato: Preprint
Publicado: 2026
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author Daluiso, Roberto
Folgar-Cameán, Héctor
Pallavicini, Andrea
Vázquez, Carlos
author_facet Daluiso, Roberto
Folgar-Cameán, Héctor
Pallavicini, Andrea
Vázquez, Carlos
contents In this paper, we develop a general rough volatility model for commodities that provides an automatic calibration of the initial term structure of the futures prices and an appropriate treatment of the Samuelson effect. After the theoretical analysis of this general model, we focus on the rBergomi and rHeston models and their calibration to market data of vanilla futures options on WTI Crude Oil. Finally, numerical results illustrate the performance of the proposed rough volatility models for commodities pricing.
format Preprint
id arxiv_https___arxiv_org_abs_2603_26514
institution arXiv
publishDate 2026
record_format arxiv
spellingShingle Rough volatility dynamics in commodity markets
Daluiso, Roberto
Folgar-Cameán, Héctor
Pallavicini, Andrea
Vázquez, Carlos
Pricing of Securities
Computational Finance
65C05, 91G20, 91G60
In this paper, we develop a general rough volatility model for commodities that provides an automatic calibration of the initial term structure of the futures prices and an appropriate treatment of the Samuelson effect. After the theoretical analysis of this general model, we focus on the rBergomi and rHeston models and their calibration to market data of vanilla futures options on WTI Crude Oil. Finally, numerical results illustrate the performance of the proposed rough volatility models for commodities pricing.
title Rough volatility dynamics in commodity markets
topic Pricing of Securities
Computational Finance
65C05, 91G20, 91G60
url https://arxiv.org/abs/2603.26514