In the previous question, what can you say about the expression for the drift in terms of
Question:
In the previous question, what can you say about the expression for the drift in terms of its representation of the interest-rate risk premium? What is it uniquely a function of?
Data in previous question,
Suppose that the time interval on an HJM tree is h and the forward rate process is binomial:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Question Posted: