Bruno Dupire

Being particular about calibration

Following previous work on the calibration of multi-factor local stochastic volatility models to market smiles, Julien Guyon and Pierre Henry-Labordère show how to calibrate exactly any such model. Their approach, based on McKean’s particle method,…

A dynamic model for correlation

Equity markets have experienced a significant increase in correlation during the crisis, resulting in exotic derivatives portfolios realising large losses. As larger correlations in downward scenarios are already implied in the index option market in the…

Prmia forms academic advisory council

The Professional Risk Managers’ International Association (Prmia) has created an academic advisory council in a bid to further the integration of risk management theory and practical application.

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