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Model tržišta LIBOR-a×Promjena numerara×
PodručjeKvantitativne financijeKvantitativne financije
ObiteljRegression modelRegression model
Godina nastanka19971995
TvoracAlan Brace, Dariusz Gatarek, and Marek MusielaHélyette Geman, Nicole El Karoui, Jean-Charles Rochet
VrstaInterest Rate ModelMeasure Theory
Temeljni izvorBrace, A., Gatarek, D., & Musiela, M. (1997). The market model of interest rate dynamics. Mathematical Finance, 7(2), 127-155. DOI ↗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. DOI ↗
Drugi naziviBGM Model, LMMNumeraire Switching, Measure Change
Srodne43
SažetakThe 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.
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ScholarGateUsporedite metode: Libor Market Model · Change of Numeraire. Preuzeto 2026-06-20 s https://scholargate.app/hr/compare