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On pricing and hedging in the swaption market: how many factors, really?

Authors :
Fan, Rong
Gupta, Anurag
Ritchken, Peter
Source :
Journal of Derivatives. Fall, 2007, Vol. 15 Issue 1, p9, 25 p.
Publication Year :
2007

Abstract

We examine how the number of factors and their associated volatility structures affect pricing accuracy and hedging performance in the swaption market. In spite of the fact that low dimensional [...]

Details

Language :
English
ISSN :
10741240
Volume :
15
Issue :
1
Database :
Gale General OneFile
Journal :
Journal of Derivatives
Publication Type :
Academic Journal
Accession number :
edsgcl.168748150