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arXiv 2017-10-30 2 views

The implied volatility of Forward-Start options: ATM short-time level, skew and curvature

Alos, Elisa · Jacquier, Antoine · Leon, Jorge

Original · EN

Using Malliavin Calculus techniques, we derive closed-form expressions for the at-the-money behaviour of the forward implied volatility, its skew and its curvature, in general Markovian stochastic volatility models with continuous paths.

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