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On the martingale property in the rough Bergomi model. (arXiv:1811.10935v1 [q-fin.MF])

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We consider a class of fractional stochastic volatility models (including the so-called rough Bergomi model), where the volatility is a superlinear function of a fractional Gaussian process. We show that the stock price is a true martingale if and only if the correlation $\rho$ between the driving Brownian motions of the stock and the volatility is nonpositive. We also show that for each $\rho<0$ and $m> \frac{1}{{1-\rho^2}}$, the $m$-th moment of the stock price is infinite at each positive time.


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