How to apply Ito formula on non-gaussian Ornstein Uhlenbeck process

262 Views Asked by At

I have an non-Gaussian Ornstein Uhlenbeck process in the framework of Barndorff-Nielsen and Shephard (2001, 2003)

$d\sigma^2(t)=-\lambda\sigma^2(t)dt+dz(\lambda t)$

where $z(t)$ is a Levy jump process with stationary.

I want to compute $d\ln\sigma^2(t)$, but I don't know how to apply Ito formula for Levy process with jump.

I appreciate if someone can help me out.

Thanks in advance.