This paper derives an equilibrium formula for pricing European options and other contingent claims which allows incorporating impacts of several important economic variable on security prices including, among others, representative agent preferences, future volatility and rare jump events. The...

The paper by C. Ma [1] contains several errors. First, statement and proof of Theorem 2.1 on the existence of intertemporal recursive utility function as a unique solution to the Koopmans equation must be amended. Several additional technical conditions concerning the consumption domain,...