In this paper, to cope with the shortage of sufficient theoretical support resulted from the fast-growing quantitative financial modeling, we investigate two classes of generalized stochastic volatility models, establish their well-posedness of strong solutions, and conduct the stability analysis with respect to small perturbations. In the first class, a multidimensional path-dependent process is driven by another multidimensional path-dependent process. The second class is a generalized one-dimensional stochastic volatility model with Holder continuous coefficients. What greatly differentiates those two classes of models is that both the process and its correlated driving process have their own subdifferential operators, whose one special case is the general reflection operators for multi-sided barriers. Hence, the models investigated fully cover various newly explored variants of stochastic volatility models whose well-posedness is unknown, and naturally serve as the rigorous mathematical foundation for new stochastic volatility model development in terms of multi-dimension, path-dependence, and multi-sided barrier reflection.
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