Libor Market Model is a model where Libor forwards have log-normal distribution in their’s respective probability measures (called T-measure) example of Libor Market Model with just 2 forwards: is a price at time t of zero-coupon bond paying at ,…

Libor Market Model is a model where Libor forwards have log-normal distribution in their’s respective probability measures (called T-measure) example of Libor Market Model with just 2 forwards: is a price at time t of zero-coupon bond paying at ,…