---
title: Functional Stochastic Discount Factors in the Stochastic Volatility Model
url: https://www.ml-quant.com/papers/ssrn/4672635/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-09-26
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: SSRN 4672635
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4672635
featured: 2024-01-03
citations: 0
topic: Derivatives & Volatility
---


# Functional Stochastic Discount Factors in the Stochastic Volatility Model

The stochastic volatility model shows that certain stochastic discount factors can cause a bubble in wealth processes and derivatives, but not in stocks or risk-free bonds.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4672635
- Identifier: SSRN 4672635
- Released: 2023-12-21
- First featured: Quant Letter No. 31 (2024-01-03): https://www.ml-quant.com/issues/2024-01-03/
- Citations (Semantic Scholar): 0
- Published in: not yet
- Topic: Derivatives & Volatility

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