NO.PZ2018122701000075
问题如下:
An analyst is looking at various models used to incorporate drift into term structure models. The Ho-Lee Model:
选项:
A. Incorporates no-risk premium to the interest
rate model allowing rates to vary according to their volatility.
B. Incorporates drift as a premium to interest
rates that remains constant over time.
C. Allows for a risk premium to be applied to
interest rates that changes over time.
D. Incorporates drift into the model following
the assumption that rates revert to the long-run equilibrium value.
解释:
C is correct.
考点Term Structure Models
解析The Ho-Lee model incorporates a premium to each rate change that can be different at each point in time.
请问D的那个equilibrium 会体现在现在学的所有model里吗