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S. Heston, “A Closed Form Solution for Options with Stochastic Volatility with Applications to Bond and Cu- rrency Options,” Review of Financial Studies, Vol. 6, No. 2, 1993, pp. 327-345. doi:10.1093/rfs/6.2.327

has been cited by the following article:

• TITLE: On the Consistency of a Firm’s Value with a Lognormal Diffusion Process

  AUTHORS: Andrew M. K. Cheung, Van Son Lai

  KEYWORDS: Cashflow Valuation; Adjustment Cost; Non-Constant Volatility Process; Lognormal Distribution

  JOURNAL NAME: Journal of Mathematical Finance, Vol.2 No.1, February 28, 2012

  ABSTRACT: A partial equilibrium model is developed to examine conditions supporting the representation of the value of a firm by the lognormal diffusion process. The model formalizes the operating side of the firm and leads to a formula valuing the firm’s risky profit stream. The present value formula is then compared to the existing work on valuing exogenous risky income stream. Implications of the resulted pricing model on the volatility of the firm value processes are explored.