I`m not sure with understanding Heston Model clearly.
1) How to derive volatility after calibrating all parameters from vanilla options in Heston Model?
Is it like putting Heston price in BS model to derive Implied vol?
2) what`s the exact meaning of volatility in volatility smile by Heston Model?
is it instantaneous volatility like local volatility at forward ?
Then how to use volatility(in smile curve) for pricing ?
i`m not sure.
3) How about SABR MODEL
What`s the meaning of volatility of SABR MODEL.
I`m quiet confusing in understanding stochastic volatility model.
IF anyone knows well, plz Help