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Pricing in Multi-Heston Framework (I). Riccati equations

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Abstract

AbstractThis article presents the ultimate in resolving a pricing framework's multi-Heston. Basically, we use the theorem Carr-Bakshi-Madan and a characteristic function method. In this first part, we integrate solutions of Riccati equations.Keywords: Riccati ODE, Multi-Heston framework, financial derivatives, Carr-Bakshi-Madan theorem

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