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:
“One of the most important things we adults can do for young children is to model the kind of person we would like them to be.”
—Carol B. Hillman (20th century)