A Practical Guide to GMM (With Applications to Option Pricin

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    0 5 10 15 20 250

    0.02

    0.04

    0.06

    0.08

    0.1

    0.12

    0.14

    0.16

    0.18

    Degrees of Freedom (nu)

    O

    bjectiveFunctionQ(nu)

    MOM1

    MOM2

    GMM

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    0

    0.1

    0.2

    0.3

    0

    0.1

    0.2

    0.30.0184

    0.0186

    0.0188

    0.019

    0.0192

    0.0194

    0.0196

    0.0198

    sigma 1 sigma 2

    -

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    0.050.1

    0.150.2

    0.250.3

    0.05

    0.1

    0.15

    0.2

    0.25

    0.30.0175

    0.018

    0.0185

    0.019

    0.0195

    0.02

    sigma 1sigma 2

    -

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