There are two ways to estimate the forward rates average volatility over the caplets life. What are

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There are two ways to estimate the forward rate’s average volatility over the caplet’s life. What are they? What are their advantages and disadvantages?

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An Introduction to Derivative Securities Financial Markets and Risk Management

ISBN: 978-0393913071

1st edition

Authors: Robert A. Jarrow, Arkadev Chatterjee

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Question Posted: Dec 02, 2015 04:03 AM

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There are two ways to estimate the forward rates average volatility over the caplets life. What are

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An Introduction to Derivative Securities Financial Markets and Risk Management

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