Questions tagged [uncertain-volatility]

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1answer
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Local volatility and Stochastic Volatility

Please help me understand similarity and differences between local volatility and Stochastic Volatility both intuitively and mathematically.
4
votes
3answers
389 views

Difference between risk and uncertainty

I'm reading the paper "Risk Measures in Quantitative Finance" by Mitra and Ji (2010). On page 2 it reads: We note that some Academics distinguish between risk and uncertainty as first defined by ...
5
votes
3answers
414 views

Uncertain volatility

Recently, I have encountered something called "uncertain volatility". Is it a popular concept in QF? Do practitioners use it nowadays? What are its pros and cons compared to e.g more familiar ...