Multiple Choice
In the Black-Derman-Toy (BDT) model, short rates are distributed as
A) Normal
B) Lognormal
C) Exponential
D) None of the above
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q2: A one-factor bond pricing model implies
Q3: Assume annual compounding. The one-year and
Q4: Based on your answers to the previous
Q5: In the Cox-Ingersoll-Ross (1985) model, interest
Q6: In the Ho & Lee (1986)
Q7: In the Cox-Ingersoll-Ross (1985) model, interest
Q8: Assume annual compounding. The one-year and
Q9: In the Black-Derman-Toy (BDT) model, short rates
Q10: Assume annual compounding. The one-year and
Q11: An exponential-affine short rate bond model is