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Practical options pricing for better-informed investmentdecisions. The Heston Model and Its Extensions in VBA is thedefinitive guide to options pricing using two of the derivativesindustry's most powerful modeling tools—the Heston model, andVBA. Light on theory, this extremely useful reference focuses onimplementation, and can help investors more efficiently—andaccurately—exploit market information to better informinvestment decisions. Coverage includes a description of the Hestonmodel, with specific emphasis on equity options pricing andvariance modeling, The book focuses not only on the original Hestonmodel, but also on the many enhancements and refinements that havebeen applied to the model, including methods that use the Fouriertransform, numerical integration schemes, simulation, methods forpricing American options, and much more. The companion websiteoffers pricing code in VBA that resides in an extensive set ofExcel spreadsheets. The Heston model is the derivatives industry's most popularstochastic volatility model for pricing equity derivatives. Thisbook provides complete guidance toward the successfulimplementation of this valuable model using the industry'subiquitous financial modeling software, giving users theunderstanding—and VBA code—they need to produce optionprices that are more accurate, and volatility surfaces that moreclosely reflect market conditions. Derivatives pricing is often the hinge on which profit is madeor lost in financial institutions, making accuracy of utmostimportance. This book will help risk managers, traders, portfoliomanagers, quants, academics and other professionals betterunderstand the Heston model and its extensions, in a writing stylethat is clear, concise, transparent and easy to understand. Forbetter pricing accuracy, The Heston Model and Its Extensions inVBA is a crucial resource for producing more accurate modeloutputs such as prices, hedge ratios, volatilities, and graphs.