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Fast-excursion limit of the Heston model

q-fin.MF · 2026-06-04 · unverdicted · novelty 7.0

Introduces the fast-excursion Heston model as a non-degenerate limit of the classical Heston model, yielding interval-valued processes via selections of random closed sets that raise barrier hitting probabilities by order 10% for short-term FX options.

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