Estimation of parametric homogeneous stochastic volatility pricing formulae based on option data

This article provides a procedure for the estimation of parametric homogeneous stochastic volatility (SV) pricing formulae based on option data. Our estimator has the advantage of being (i) based on option data, (ii) easy to implement in practice, (iii) with clear statistic properties and (iv) applicable under more general assumptions about pricing formulae and error terms.