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In a university project I am looking at Black Scholes model with a stochastic volatility. I’m still not quite sure about my focus (I am in the beginning 'Idea phase'). I want to explain the theory behind stochastic differential equation and then implement some numerical methods too solve pricing models. I haven’t worked much with idea. Please make some suggestions/comments? How can I analyze some data from from the real world? I want to include simulations of real options prices or similar in my project. Thanks

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    $\begingroup$ Just as a note, real financial instruments display a "volatility smile", which means they aren't consistent with Black-Scholes. Do you want this to be part of your project? $\endgroup$ – barrycarter Jan 28 '16 at 13:57
  • $\begingroup$ Although I really like this question it will probably be closed because SE is not a good fit for "suggestions/comments" for a "beginning 'idea phase'" - perhaps you can be a little more specific what you want to ask? $\endgroup$ – vonjd Jan 28 '16 at 20:15

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