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Verandering van Numeraire×Libor Marktmodel×
VakgebiedKwantitatieve financieringKwantitatieve financiering
FamilieRegression modelRegression model
Jaar van ontstaan19951997
GrondleggerHélyette Geman, Nicole El Karoui, Jean-Charles RochetAlan Brace, Dariusz Gatarek, and Marek Musiela
TypeMeasure TheoryInterest Rate Model
Oorspronkelijke bronGeman, 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 ↗Brace, A., Gatarek, D., & Musiela, M. (1997). The market model of interest rate dynamics. Mathematical Finance, 7(2), 127-155. DOI ↗
AliassenNumeraire Switching, Measure ChangeBGM Model, LMM
Verwant34
SamenvattingChange 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.
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ScholarGateMethoden vergelijken: Change of Numeraire · Libor Market Model. Geraadpleegd op 2026-06-20 via https://scholargate.app/nl/compare