In the LMM, Which of the Following Are Martingales

question 14

Multiple Choice

In the LMM, which of the following are martingales?

• A) Libor rates.
• B) Libor returns.
• C) Zero-coupon rates.
• D) Yields.

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Definitions:

Factor Market

A marketplace for the services of a factor of production (e.g., labor, land, capital), where these services are bought and sold.

Firms

Business organizations or entities engaged in commercial, industrial, or professional activities.

Normative Statement

An assertion that expresses an opinion, value judgement, or what ought to be, rather than what is factual or descriptive.

Teachers

Professionals who help students to acquire knowledge, competence, or virtue in educational settings.