Hull-White model

The Hull-White Model is a mathematical framework used in finance to describe how interest rates evolve over time. It assumes that interest rates can change randomly, influenced by factors such as economic conditions and market expectations. This model helps investors and risk managers price interest rate derivatives, like bonds or options, by forecasting future interest rates. Its flexibility allows for easy adjustments to fit historical data, making it a popular choice for valuing financial instruments in a changing economic environment.