In the Black-Derman-Toy (BDT) Model, Short Rates Are Distributed as

question 1

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:

Histogram

A graphical representation of the distribution of numerical data, where the data is grouped into bins and the frequency of data points within each bin is depicted by the height of the bar.

Intervals

Ranges or spans between two values, often used in contexts of measurement, time, or statistical analysis.

Overlap

The extent to which two or more things cover the same area or share common elements.

Frequency Distribution

A statistical analysis that shows how often each different value in a set of data occurs.