Pricing of geometric Asian options in the Volterra-Heston model
Geometric Asian options are a type of option where the payoff depends on the geometric mean of the underlying asset over a certain period of time. This paper is concerned with the pricing of such options for the class of Volterra-Heston models, covering the rough Heston model. We are able to derive semi-closed formulas for the prices of geometric Asian options with fixed and floating strikes for this class of stochastic volatility models. These formulas require the explicit calculation of the co
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Stochastic processes and financial applicationsFinanceHeston modelStochastic volatilityMathematicsApplied mathematicsValuation of optionsAsian optionAffine transformationLogarithmVolterra integral equationVolatility (finance)Mathematical analysisEconometricsSABR volatility modelPure mathematicsIntegral equation
