A recent study by Professor Seil Kim of the City University of New York and Professor Seungjoon Oh of Peking University HSBC Business School has been published in the September 2024 issue (Volume 29, Issue 3, pp. 2617–2649) of Review of Accounting Studies (RAST).

The Heston model, named after Steven L. Heston, is a representative continuous-time stochastic volatility (SV) model. It assumes that the volatility of an asset is evolving over time following the Cox-Ingersol-Ross (CIR) process rather than staying unchanged. While it is not the first SV model, it became popular in finance academia and industry thanks to its analytic property. For example, the option ...

In many countries, student loans are very important for financing higher education