stochastic volatility
A situation where the annualized standard deviation of price fluctuations in an asset's price varies over time, rather than staying constant. Examples of stochastic volatility models might include the Heston, SABR, Chen and GARCH models. These models evolved to adjust the Black Scholes option pricing model in order to take volatility and price changes into account to help improve its accuracy.
Browse by Subjects
fixed income
invisible assets
modified accounts
trust deed
trading limit