normal, as in "normal distribution"

<t>hi,I've been assigned a long term project for the summer and was looking for some help.I was wondering what type of binomial or trinomial tree is the best to use for pricing european swaptions. Basically, I have to find the best interest rate model to use (hull-white, ho lee, etc) and make a prog...

<t>im trying to develop a binomial/trinomial model to price swaptions. I was wondering how hard it would be to implement a two factor model in excel, or whether I should try to stick with a one factor model.since the swaptions markets view interest rates as normal, not log-normal, which model should...

<t>i have a very simple question about the hull white model and i was hoping someone could help me..in the hull-white one factor model to price interest rates, the factor beingn referred to is volatility, correct?so in the two-factor model, what do people usually use as the second factor?and, does t...

<t>i need to find an interest rate model to price swaptions in order to implement it into a binomial/trinomial tree.a closed form model gives bounds to what interest rates can do.. i need to find an open-form model (ie. something that can allow for negative interest rates, albeit with a very small p...

is the bdt model based on normal or log-normal interest rates?is this model open or closed?also,does anyone have any good beginner's information on how to implement this model into a binomial tree?thanks

<t>Hi,I have been assigned a project involving swaptions. I have to implement a tree-based swaption pricing model using excel. The model must assume normal (not lognormal) interest rate movements and must take on an open-form appraoach. My questions:Which normal, open-form interest rate models shoul...