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Smile Model

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Volatility-Smile Modeling With Density-MixtureAlternativediusion dynamics is just one possible means to model the smile (local volatility models, here). There are many other possibilities (stochasticvol models, … Doc Retrieval Foreign-exchange Option – Wikipedia, The Free EncyclopediaValuation: the Garmanâ??Kohlhagen model . As in the Blackâ??Scholes model for stock options and the Black model for certain interest rate [...]

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