I know there are some paper related LIBOR market model with stochastic volatility. But I found they are all not using lattice mothod. One of the reason is maybe the derivatives is european option, so it isn't neccessary to use lattice method. Almost papers are using Monte Carlo or even have a closed form solution, of course depended on the instruments. I tried hardly to find the LIBOR market model with stochastic volatility by lattice. Could anyone suggest any repated paper for me? I find one paper related how to build a tree for LIBOR market model. However, it uses the constant volatility. Hope somebody may help me give some suggestion papers or give me your opionion or hint.Thank you very much~~

or Could you suggest some paper related any interest rate model with stochastic volatilty by Lattice ?Thank you very much~~

I don't think any such papers exist. The reason is that the LIBOR market model on a tree with deterministic vol has never been satisfactorily done.MJ

But John Hull said I can do this~~ although with diffculty. So he recommand that I had better price american opiton as eurodollar futures option by lattice if I would like to apply the LIBOR market model.So what's your opinion?