the extent that for suitable parameter combinations our model may not admit the existence of an equivalent risk-neutral probability measure for some economies. In spite of this feature, the problem of pricing and hedging contingent claims can always be solved under the more general benchmark approach of [@bookplaten10]: the real world pricing formula (see [@bookplaten10]) and benchmarked risk minimization for hedging (see [@duplaten14]) will be the tools we employ to solve both problems.\
Despite of the richness of our framework, it is possible to efficiently solve and implement the pricing of plain vanilla instruments via Fourier-based techniques, see [@article_Carr99] and [@lewis2001]. Semi analytical closed form solutions for products such as European FX options can be computed thanks to the availability of the exact formula for the joint Fourier transform of the model’s state variables, see [@grasselli13].\
We test our model on real datasets of vanilla FX options by performing several calibration experiments. Our empirical results are twofold. On the one side, we confirm the empirical findings of [@martinoplaten13] on the violation of the risk neutral pricing paradigm. The appearence of such violations may change over time and across currencies. In fact, our multiple calibration experiment seems to suggest the presence 