Abstract
We overcome the limitations of the previous literature in the European options pricing. In doing so, we provide a closed-form formula that does not require any numerical/computational methods. The formula is as simple as the classical Black–Scholes pricing formula. In addition, we simultaneously include jumps and stochastic volatility. Our approach implies the introduction of a new class of stochastic processes that are based on Clifford algebras. The approach can be easily generalized to higher dimensional problems.
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