Interest Model Option Rate
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Black model - The Black model (sometimes known as the Black-76 model) is a variant the Black-Scholes option pricing model. It is widely used in the futures market and interest rate market for pricing bond options.
Short rate model - In the context of interest rate derivatives, a short rate model is a mathematical model that describes the future evolution of interest rates by describing the future evolution of the short rate.
Hull-White model - In financial mathematics, the Hull-White model is a model of future interest rates. It is relatively straight-forward to translate the mathematical description of the evolution of future interest rates onto a tree or lattice and so interest rate derivatives such as bermudan swaptions can be valued in the model.
LIBOR Market Model - The LIBOR Market Model is an interest rate model used for the pricing of interest rate derivatives, especially for complex derivatives. The model primitives are a set of forward rates.
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