Event Modeling

[vanillaice]

Hello! I've searched extensively online but haven't found a substantial paper related to event volatility modeling, which is distinct from the base Black-Scholes volatility, and at some places implied volatility=base volatility + event volatility. I wonder if anyone here has insights on this topic. Is stochastic volatility applicable to event modeling? Alternatively, could events be represented as jumps in the SVJ (Stochastic Volatility with Jumps) model? Thanks in advance for any guidance!

 

[code breaker]

Yes it can, consider event modelling where we try to model certain events according to the required state of logic; coding that would be simple.
Event volatility modeling is the same thing as implementing event model but for volatility based on the required state of logic(after we consider adding the volatility input to the parameter of the event model)