What good is a perfectly fitting stochastic volatility model for VIX such as the Rough Heston ??

Discussion in 'Options' started by stochastix, Nov 14, 2020.

  1. My simulation code is working well it seems. need to do some debugging. I didnt implement the characteristic function/fourier inversion yet.. just MCMC .. maybe that will be good enough.. .. I think that having a parsimonious parameter set that can be calibrated/filtered over time will be quite valuable because then it allows one to hypothesize on a longer-term evolution of the underlying variables and compare with the market consensus from calibrated prices

    below is 1 day simulated T=1 with dt=0.001

    [​IMG]
     
    #21     Nov 27, 2020
  2. Kevin?
     
    #22     Nov 27, 2020