How is the interest rate tree rendered arbitrage-free?
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How is the interest rate tree rendered arbitrage-free?
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In finance an interest rate tree is a graphical representation of possible future interest rate movements over time To render an interest rate tree arbitragefree it must satisfy the noarbitrage princi...View the full answer
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Related Book For
Introduction To Fixed Income Analytics
ISBN: 9780470572139
2nd Edition
Authors: Steven V. Mann, Frank J. Fabozzi
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