Stochastic volatility jump refers to a concept in financial mathematics and quantitative finance, particularly within the context of modeling asset prices and their volatility. It combines two key ideas: stochastic volatility and jumps in asset prices. 1. **Stochastic Volatility**: This concept allows for the volatility of an asset's returns to change over time and to be influenced by random factors. In traditional models, such as the Black-Scholes model, volatility is assumed to be constant.
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