Explain experiment of Vasicek of short-term interest rate

Explain the experiment of Oldrich Vasicek of short-term interest rate.

E

Expert

Verified

Oldrich Vasicek modelling a short-term interest rate like a random walk and concluded as interest rate derivatives could be valued by using equations the same to the Black–Scholes partial differential equation.

   Related Questions in Financial Management

©TutorsGlobe All rights reserved 2022-2023.