Various Financial Applications of Regime-Switching Jump-Diffusion Models

The regime-switching jump-diffusion models have attracted great attention from the research community recently due to their ability to capture the random market movements during both short-term and long-term periods. This research focuses on the applications of various regime-switching jump-diffusio...

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Bibliographic Details
Main Author: Yang, Yu
Format: Thesis
Published: Curtin University 2020
Online Access:http://hdl.handle.net/20.500.11937/80427
Description
Summary:The regime-switching jump-diffusion models have attracted great attention from the research community recently due to their ability to capture the random market movements during both short-term and long-term periods. This research focuses on the applications of various regime-switching jump-diffusion models to two important financial problems, the mean-variance asset-liability management problem and the pricing of variance (volatility) swaps, where little work has been done to our knowledge.