  We apply path integration techniques to obtain option pricing with stochastic
volatility using a generalized Black-Scholes equation known as the Merton and
Garman equation. We numerically simulate the option prices using the technique
of path integration. Using market data, we determine the parameters of the
model. It is found that the market chooses a special class of models for which
a more efficient algorithm, called the bisection method, is applicable. Using
our simulated data, we generate some implied volatility curves. We also analyze
and study in detail some of the characteristics of the volatility curves within
the model.
