A Glimpse into Quantitative Trading: Price Distribution Prediction with the Heston Model and Python

The Heston model is a mathematical model used in finance to describe the dynamics of asset prices, particularly for options pricing. Developed by Steven Heston in 1993, it extends the Black-Scholes model by incorporating stochastic volatility, allowing the volatility of the underlying asset to vary over time. In the Heston model, the volatility follows a square root process, resulting in a more realistic representation of market behavior. This is most apparent during periods of high and low volatility compared to binomial or constant volatility models. The model is widely employed in option pricing and risk management to better capture the complex dynamics observed in financial markets. <a href="https://medium.com/coinmonks/a-glimpse-into-quantitative-trading-future-price-distribution-with-the-heston-model-and-python-45e429f0039f">Click Here</a>