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a binomial tree with stochastic volatility?

Posted: October 25th, 2010, 6:53 am
by ninjawarrier
I know Derman and Kani had a implied tree that is consistent with a local volatility model, but is there any research or results on a binomial tree that is consistent with Heston's SVM? thanks.

a binomial tree with stochastic volatility?

Posted: November 28th, 2011, 1:02 pm
by fab10ab
Yes, the tree by Beliaeva and Nawalkha, Journal of Derivatives, Summer 2010.