What is the advantage of lmm over hjm

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Reference no: EM131241207

1. What is the advantage of LMM over HJM?

2. Provide an intuitive explanation of why a ratchet cap increases in value as the number of factors increase.

3. Show that equation (31.10) reduces to (31.4) as the δ_i tend to zero.

Reference no: EM131241207

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