Steven Heston

Steven Heston is an influential figure in finance, best known for his work on option pricing models, particularly the Heston model, which describes how the volatility of an asset may change over time. His model introduced a way to account for "stochastic volatility," meaning that, unlike traditional models that assume constant volatility, Heston's approach recognizes that market conditions can cause fluctuations in volatility. This has significant implications for investors and traders as it helps them better assess risks and make informed decisions in financial markets. Heston's contributions have advanced both academic research and practical applications in finance.