In the Black-Derman-Toy (BDT)model,short Rates Are Distributed as

question 21

Multiple Choice

In the Black-Derman-Toy (BDT) model,short rates are distributed as

• A)Normal
• B)Lognormal
• C)Exponential
• D)None of the above

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Definitions:

Zuckerman

Refers to Marvin Zuckerman, an American psychologist known for his research on sensation seeking as a personality trait.

Sensation Seeking

A trait describing the tendency to seek out novel, varied, complex, and intense sensations and experiences, and the willingness to take risks for the sake of such experiences.

Adventure

An exciting or remarkable experience involving uncertain outcomes and risks.

Zuckerman's Research

Refers to the body of work by psychologist Marvin Zuckerman, focusing on sensation seeking, personality traits, and their biological bases.