Programming Assignment 26.4.4 Calibration takes the spot rate curve to reverse engineer the HullWhite models parameters. However,

Question:

Programming Assignment 26.4.4 Calibration takes the spot rate curve to reverse engineer the Hull–White model’s parameters. However, just because the curve is matched by no means implies that the true model parameters and the estimated parameters are matched. Call a model stable if the model parameters can be approximated well by the estimated parameters.Verify that both the Hull–White model and the BDT model are stable [192, 885].

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Question Posted: