ONLY RESPOND IF YOU CAN PROVIDE MATLAB CODE, WRITTEN OR TYPED. THANK YOU

Table 1: Data for the Heston Model (20 marks) (Stochastic Volatility Model) The Heston stochastic volatility model [Heston(19 for pricing options is given by SdS=rdt+vdZ(1)dv=(vv)dt+vdZ(2)E(dZ(1)dZ(2))=dt where is the speed of reversion of the variance v to its long-term mean v. Write a Matlab code to compute the value of a European call with strike K and expiry T using the Monte Carlo method whose path can be generated as follows xi+1=xi+rt2vit+viti(1)vi+1=(vi+2ti(2))2(viv)t42tE(i(1)i(2))= where x=log(S) and i(1) and i(2) are standard normals with correlation . If at any time vi