In the context of interest rate derivatives, a short-rate model is a mathematical model that describes the future evolution of interest rates by describing the future evolution of the short rate, usually written .
Read more about Short-rate Model: The Short Rate, Particular Short-rate Models, Other Interest Rate Models
Famous quotes containing the word model:
“The striking point about our model family is not simply the compete-compete, consume-consume style of life it urges us to follow.... The striking point, in the face of all the propaganda, is how few Americans actually live this way.”
—Louise Kapp Howe (b. 1934)