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Alternative models for FX: pricing double barrier options in regime-switching L\'evy models with memory

Alternative models for FX: pricing double barrier options in regime-switching L\'evy models with memory

This paper is a supplement to our recent paper ``Alternative models for FX, arbitrage opportunities and efficient pricing of double barrier options in L\'evy models". We introduce the class of regime-switching L\'evy models with memory, which take into account the evolution of the stochastic parameters in the past. This generalization …