The Black model (sometimes known as the Black-76 model) is a variant of the Black–Scholes option pricing model. Its primary applications are for pricing bond options, interest rate caps / floors, and swaptions. It was first presented in a paper written by Fischer Black in 1976.
Black's model can be generalized into a class of models known as log-normal forward models, also referred to as LIBOR market model.
Read more about Black Model: The Black Formula, Derivation and Assumptions
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