Modern pricing of interest-rate derivatives : the LIBOR market model and beyond /
Material type:
TextPublication details: Princeton, N.J. : Princeton University Press, c2002.Description: xvii, 467 p. :illISBN: - 0691089736
- 9780691089737
- 332.6323 REB
- HG6024.5 .R433 2002
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| 332.6323 HOM The price of money, 1946 to 1969 : | 332.6323 INT An introduction to the gilt-edged market/ | 332.6323 NOD Convertible bonds : | 332.6323 REB Modern pricing of interest-rate derivatives : | 332.6323 REB Modern pricing of interest-rate derivatives : | 332.6323 REB Modern pricing of interest-rate derivatives : | 332.63230971 PET Economics of the Canadian corporate bond market / |
Includes index.
Includes bibliographical references (p. 445-452).
In this book, the author draws on his academic and professional experience, straddling both sides of the divide to bring together and build on what theory and trading have to offer. Rebonato begins by presenting the conceptual foundations for the application of the LIBOR market model to the pricing of interest-rate derivatives. Next he treats in great detail the calibration of this model to market prices, asking how possible and advisable it is to enforce a simultaneous fitting to several market observables. He does so with an eye not only to mathematical feasibility but also to financial justification, while devoting special scrutiny to the implications of market incompleteness. Much of the book concerns an original extension of the LIBOR market model, devised to account for implied volatility smiles. This is done by introducing a stochastic-volatility, displaced-diffusion version of the model. This book is must reading for quantitative researchers in financial houses, sophisticated practitioners in the derivatives area, and students of finance.
rpm 08/09/2016
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