1.

Record Nr.

UNINA9910139504503321

Autore

Rebonato Riccardo

Titolo

The SABR/LIBOR market model [[electronic resource] ] : pricing, calibration and hedging for complex interest-rate derivatives / / Riccardo Rebonato Kenneth McKay Richard White

Pubbl/distr/stampa

Hoboken, NJ, : John Wiley & Sons, 2009

ISBN

1-119-99563-9

1-119-20639-1

1-282-68985-1

9786612689857

0-470-74488-X

Descrizione fisica

1 online resource (298 p.)

Altri autori (Persone)

McKayKenneth <1981->

WhiteRichard <1976->

Disciplina

332.63/23

Soggetti

Hedging (Finance) - Mathematical models

Options (Finance) - Prices - Mathematical models

Derivative securities - Accounting

Interest rate futures

LIBOR market model

Lingua di pubblicazione

Inglese

Formato

Materiale a stampa

Livello bibliografico

Monografia

Note generali

Description based upon print version of record.

Nota di bibliografia

Includes bibliographical references and index.

Nota di contenuto

The SABR/LIBOR Market Model; Contents; Acknowledgements; 1 Introduction; I The Theoretical Set-Up; II Implementation and Calibration; III Empirical Evidence; IV Hedging; References; Index

Sommario/riassunto

This book presents a major innovation in the interest rate space. It explains a financially motivated extension of the LIBOR Market model which accurately reproduces the prices for plain vanilla hedging instruments (swaptions and caplets) of all strikes and maturities produced by the SABR model. The authors show how to accurately recover the whole of the SABR smile surface using their extension of the LIBOR market model. This is not just a new model, this is a new way of option pricing that takes into account the need to calibrate as accurately as possible to the plain vanilla reference hedgin