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We develop analytical methodology for pricing and hedging options on the realized variance under the Heston stochastic variance model (1993) augmented with jumps in asset returns and variance. By employing generalized Fourier transform we obtain analytical solutions (up to numerical inversion of Fourier integral) for swaps on the realized volatility and variance and for options on these swaps. We also extend our framework for pricing forward-start options on the realized variance anddoi:10.21314/jcf.2008.185 fatcat:ltiecgh6qbgirnpzxcydeaka24