Krahasoni metodat

	Modeli i Tregut Libor	Vlerësimi pa rrezik
Fusha	Financa kuantitative	Financa kuantitative
Familja	Regression model	Regression model
Viti i origjinës	1997	1979
Krijuesi	Alan Brace, Dariusz Gatarek, and Marek Musiela	John Harrison and David Kreps
Lloji	Interest Rate Model	Fundamental Principle
Burimi themelues	Brace, A., Gatarek, D., & Musiela, M. (1997). The market model of interest rate dynamics. Mathematical Finance, 7(2), 127-155.	Harrison, J. M., & Kreps, D. M. (1979). Martingales and arbitrage in multiperiod securities markets. Journal of Economic Theory, 20(3), 381-408.
Emërtime të tjera	BGM Model, LMM	Risk-Neutral Measure, Q-Measure
Të lidhura	4	4
Përmbledhja	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.	Risk-neutral valuation (1979) is the fundamental principle that derivative prices equal the expected payoff discounted at the risk-free rate, computed under a risk-neutral probability measure (Q-measure). This principle, formalized by Harrison and Kreps, eliminates the need to estimate risk premia and is the foundation of modern derivatives pricing.