विधियों की तुलना करें

	न्यूमेरेयर का परिवर्तन	लिबोर मार्केट मॉडल
क्षेत्र	मात्रात्मक वित्त	मात्रात्मक वित्त
परिवार	Regression model	Regression model
उद्भव वर्ष	1995	1997
प्रवर्तक	Hélyette Geman, Nicole El Karoui, Jean-Charles Rochet	Alan Brace, Dariusz Gatarek, and Marek Musiela
प्रकार	Measure Theory	Interest Rate Model
मौलिक स्रोत	Geman, H., El Karoui, N., & Rochet, J. C. (1995). Changes of numeraire, changes of probability measure and option pricing. Journal of Applied Probability, 32(2), 443-458.	Brace, A., Gatarek, D., & Musiela, M. (1997). The market model of interest rate dynamics. Mathematical Finance, 7(2), 127-155.
उपनाम	Numeraire Switching, Measure Change	BGM Model, LMM
संबंधित	3	4
सारांश	Change of numeraire is a mathematical technique for simplifying option pricing by changing the choice of discount factor (numeraire). By selecting a numeraire aligned with the payoff structure, complex problems become simple. The technique is essential for LIBOR market models and multi-currency derivatives.	The LIBOR Market Model (BGM), developed by Brace, Gatarek, and Musiela (1997), is a multi-factor interest rate model that directly models forward LIBOR rates as lognormal processes. Unlike short-rate models, LMM naturally prices caplets at the market level and is the industry standard for valuing caps, floors, and exotic interest rate derivatives.