  Based on a criterium of mathematical simplicity and consistency with
empirical market data, a stochastic volatility model has been obtained with the
volatility process driven by fractional noise. Depending on whether the
stochasticity generators of log-price and volatility are independent or are the
same, two versions of the model are obtained with different leverage behavior.
Here, the no-arbitrage and incompleteness properties of the model are studied.
Some risk measures are also discussed in this framework.
