The Ho–Lee model is a mathematical model used in finance to describe the dynamics of interest rates. Developed by Thomas Ho and Sang-Bin Lee in 1986, this model is notable for its simplicity and ability to handle the term structure of interest rates, making it useful for pricing various interest rate derivatives and managing interest rate risk.

Ancestors (6)

  1. Short-rate models
  2. Mathematical finance
  3. Applied mathematics
  4. Fields of mathematics
  5. Mathematics
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