<t>QuoteOriginally posted by: CulverinI talked to a prof. His impression is that people don't use Heston model a lot and Hull-White method can be more popular. This is contrary to academia. In finance research, Heston or Heston-Nandi is the only acceptable way. For jumps, I heard Credit Suisse has c...

I imagine they must use a modified Black-Scholes model with stochastic or implied volatility? And what do they do about the long tails of assets returns? Do they actually use the normal distribution? Thanks