A multifactor stochastic volatility model of commodity prices

We propose a novel representation of commodity spot prices in which the cost-of-carry and the spot price volatility are both driven by an arbitrary number of risk factors, nesting many existing specifications. The model exhibits unspanned stochastic volatility, provides simple closed-form expression...

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Detalles Bibliográficos
Autores principales: Cortazar, Gonzalo, Lopez, Matias, Naranjo, Lorenzo
Formato: Artículo (Article)
Idioma:Inglés (English)
Publicado: 2025
Materias:
Acceso en línea:https://repositorio.uc.cl/handle/11534/101308