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  • Hull and White’s stochastic volatility
  • The Heston model
  • Stochastic volatility

Stochastic volatility#

Volatility with its own randomness: Hull and White’s mixing formula for uncorrelated variance, and Heston’s correlated square-root model.

Hull and White’s stochastic volatility

Hull and White's stochastic volatility

The Heston model

The Heston model
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