Pricing options under simultaneous stochastic volatility and jumps: A simple closed-form formula without numerical/computational methods

We overcome the limitations of the previous literature in the European options pricing. In doing so, we provide a closed-form formula that does not require any numerical/computational methods. The formula is as simple as the classical Black-Scholes pricing formula. In addition, we simultaneously include jumps and stochastic volatility. Our approach implies the introduction of a new class of stochastic processes that are based on Clifford algebras. The approach can be easily generalized to higher dimensional problems. (C) 2019 Elsevier B.V. All rights reserved.