What is the hjm libor model

Assignment Help Finance Basics

Reference no: EM131458301

Question: a. In the HJM libor model, is it a simple interest rate or a continuously compounded interest rate that follows a lognormal distribution?

b. Why is this difference important (hint: relates to Black's formula)?

c. In the HJM libor model, is the volatility of the simple forward rate of interest a constant, or does it depend on time?

Reference no: EM131458301

Questions Cloud

Buyers have most of the bargaining power : Identify an industry in which the suppliers have strong bargaining power and another industry in which the buyers have most of the bargaining power.

Review the case of risk at freddie mac : Risk at Freddie Mac (Stanford Business School Case F270, European Case Clearing House Case). The case considers the interest rate risk management of Freddie Mac

Vast number of laws and institutions : Our political institutions have created a vast number of laws and institutions to help us achieve the goal of equality.

Elaborate on the steps and processes you would have to do : Elaborate on the steps and processes you would have to do to try to insure that your recovery plan would work in the event of a disaster.

What is the hjm libor model : In the HJM libor model, is it a simple interest rate or a continuously compounded interest rate that follows a lognormal distribution?

Briefly explain the meaning of the acid properties : Briefly explain the meaning of the ACID properties and some concurrency issues with respect to the project.

What are the main flaws of the bcg matrix : What are the main flaws of the BCG matrix? How can this be overcome?

What does alice need to know in order to verify carol answer : We know of a protocol that uses this technique in attempt to gain security. What does Alice need to know in order to verify Carol's answer to Alice's challenge?

Review the case of liability management at general motors : Liability Management at General Motors (Harvard Business School Case 293123-PDF-ENG). The case studies issues related to managing the liability structure.

Reviews

Write a Review

Required(*) Message

Finance Basics Questions & Answers

Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

User Account

All Pages