Vasicek model
Mathematical model of interest rates
In finance, the Vasicek model is a mathematical model describing the evolution of interest rates. It is a type of one-factor short-rate model as it describes interest rate movements as driven by only one source of market risk.
Nº Q2331759 ★
Common · Knowledge
Vasicek model
Mathematical model of interest rates
In finance, the Vasicek model is a mathematical model describing the evolution of interest rates. It is a type of one-factor short-rate model as it describes interest rate movements as driven by only one source of market risk.
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From Wikipedia
In finance, the Vasicek model is a mathematical model describing the evolution of interest rates. It is a type of one-factor short-rate model as it describes interest rate movements as driven by only one source of market risk. The model can be used in the valuation of interest rate derivatives, and has also been adapted for credit markets. It was introduced in 1977 by Oldřich Vašíček, and can be also seen as a stochastic investment model.
Text: Wikipédia, CC BY-SA 4.0. · Image: Thomas Steiner (CC BY-SA 2.5) ·
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