Exercises 5.1 Generalized skew averaging Let us consider the LV model df = f

 +

Xn i=1

i(t)



ln f f0

i

!

dWt By using the proposition 5.3, prove that this model produces an equivalent implied at the rst-order in i that the time-homogeneous LV model dened by df = f

 +

Xn i=1



i



ln f f0

i

!

dWt Specify the parameters 

i.