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How to create Heston Stochastic Volatility Models in MATLAB

How to create Heston Stochastic Volatility Models in MATLAB

How to create Heston Stochastic Volatility Models in MATLAB

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quantlabs
Aug 02, 2010
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How to create Heston Stochastic Volatility Models in MATLAB
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How to create Heston Stochastic Volatility Models in MATLAB

From the Matlab Econometric toolbox help system:

The Heston (heston) class derives directly from SDE from Drift and Diffusion (SDEDDO). Each Heston model is a bivariate composite model, consisting of two coupled univariate models: (10-5)

(10-6)

Equation 10-5 is typically associated with a price pro…

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