lognormal-models

  1. K

    Clarifying question on "a" and "r" in lognormal model - tuckman

    Hi, within Tuckman's lognormal model, dr = a r dr + (vol) r dw. To clarify, is a equivalent to lambda (drift) and r equivalent to r(0), that is, the initial rate? I am struggling a bit between the initial formula for the lognormal model (Tuckman 10.5) and the formula which we'd likely use on...
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