The short rate follows an ornstein-uhlenbeck ou process


The short rate follows an Ornstein-Uhlenbeck (OU) process with k = 1.2, μ = 3%, σ = 1%. The current value of the short rate is 1%. What is the distribution of the short rate one year from now?

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Financial Management: The short rate follows an ornstein-uhlenbeck ou process
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