In this paper, employing the stochastic differential equations associated with the normal ordering, the quantum properties of a nondegenerate three-level cascade laser with a parametric amplifier and coupled to a two-mode thermal reservoir are thoroughly analyzed. Particularly, the enhancement of squeezing and the amplification of photon entanglement of the two-mode cavity light are investigated. It is found that the two cavity modes are strongly entangled and the degree of entanglement is directly related to the two-mode squeezing. Despite the fact that the entanglement and squeezing decrease with the increment of the mean photon number of the thermal reservoir, strong amount of these nonclassical properties can be generated for a considerable amount of thermal noise with the help of the nonlinear crystal introduced into the laser cavity. Moreover, the squeezing and entanglement of the cavity radiation enhance with the rate of atomic injection.
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