On the Curvature of the Bachelier Implied Volatility

Our aim in this paper is to analytically compute the at-the-money second derivative of the Bachelier implied volatility curve as a function of the strike price for correlated stochastic volatility models. We also obtain an expression for the short-term limit of this second derivative in terms of the...

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Bibliographic Details
Main Authors: Elisa Alòs, David García-Lorite
Format: Article
Language:English
Published: MDPI AG 2025-02-01
Series:Risks
Subjects:
Online Access:https://www.mdpi.com/2227-9091/13/2/27
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