menu-iconExamlexExamLexServices

Discover

Ask a Question
  1. All Topics
  2. Topic
    Business
  3. Study Set
    Fixed Income Securities
  4. Exam
    Exam 19: No Arbitrage Models and Standard Derivatives
  5. Question
    Why Are Hull-White Prices for Call Options Different from the Prices
Solved

Why Are Hull-White Prices for Call Options Different from the Prices

Question 16

Question 16

Essay

Why are Hull-White prices for call options different from the prices ob- tained in the Vasicek model?

Correct Answer:

verifed

Verified

Because instead of adjusting γ...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q10: What is the main drawback for log-normal

Q11: In what aspect is the Hull-White model

Q12: How realistic is the the term structure

Q13: What advantage does the Ho-Lee model hold

Q14: What is the main characteristic of an

Q15: What are the characteristics of Normal models?

Q17: When pricing options under the Hull-White, what

Q18: What are the main drawback of Normal

Q19: Why are values obtained from the Ho-Lee

Q20: Under the Ho-Lee model how does the

Examlex

ExamLex

About UsContact UsPerks CenterHomeschoolingTest Prep

Work With Us

Campus RepresentativeInfluencers

Links

FaqPricingChrome Extension

Download The App

Get App StoreGet Google Play

Policies

Privacy PolicyTerms of ServiceHonor CodeCommunity Guidelines

Scan To Download

qr-code

Copyright © (2025) ExamLex LLC.

Privacy PolicyTerms Of ServiceHonor CodeCommunity Guidelines