विधियों की तुलना करें

	लिबोर मार्केट मॉडल	न्यूमेरेयर का परिवर्तन
क्षेत्र	मात्रात्मक वित्त	मात्रात्मक वित्त
परिवार	Regression model	Regression model
उद्भव वर्ष	1997	1995
प्रवर्तक	Alan Brace, Dariusz Gatarek, and Marek Musiela	Hélyette Geman, Nicole El Karoui, Jean-Charles Rochet
प्रकार	Interest Rate Model	Measure Theory
मौलिक स्रोत	Brace, A., Gatarek, D., & Musiela, M. (1997). The market model of interest rate dynamics. Mathematical Finance, 7(2), 127-155.	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.
उपनाम	BGM Model, LMM	Numeraire Switching, Measure Change
संबंधित	4	3
सारांश	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.	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.