  In this paper, we implement a stochastic deflator with five economic and
financial risk factors: interest rates, market price of risk, stock prices,
default intensities, and convenience yields. We examine the deflator with
different financial assets, such as stocks, zero-coupon bonds, vanilla options,
and corporate coupon bonds. We find required regularity conditions to implement
our stochastic deflator. Our numerical results show the reliability of the
deflator approach in pricing financial derivatives.
