Volatility Models, MIDAS Regressions and the Econometrics of Option Pricing

Instructor: Eric Ghysels (UNC Chapel Hill)

This course will cover a selected list of current empirical research topics in finance and related econometric methods, namely:
  • Univariate ARCH-type models
  • MIDAS regressions
  • Econometrics of Option Pricing

  • Lecture 1

    Reading material: Nelson (1991)

    Lecture 2

    Companion notes Lecture 2

    Lecture 3

    Reading material: Ghysels, Santa-Clara and Valkanov (various papers)

    Lecture 4

    The Econometrics of Option Pricing

    Empirical Pricing Kernel

    Lecture 5

    Joint Estimation of Risk Neutral and Objective Measures (Chernov/Ghysels)

    Empirical Reverse Engineering of Pricing Kernel (Chernov)

    Jump-risk premia and "IS"-GMM (Pan)