Stochastic Volatility
Also called: local-stochastic-vol, stochastic vol
Modelling volatility as itself random and mean-reverting, rather than fixed. It captures why markets have calm and turbulent spells — and why option smiles look the way they do.
Where this is taught
Definitions are the trailer. These free levels turn Stochastic Volatility into something you play — one bite-size lesson, with worked examples, a quiz and XP.