Engineering BGM

Alan Brace

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4 hours

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Engineering BGM

by Alan Brace

2019

Taylor & Francis Group

240

9780367388379

Description

Also known as the Libor market model, the Brace-Gatarek-Musiela (BGM) model is becoming an industry standard for pricing interest rate derivatives. Written by one of its developers, Engineering BGM builds progressively from simple to more sophisticated versions of the BGM model, offering a range of methods that can be programmed into production code to suit readers' requirements. After introducing the standard lognormal flat BGM model, the book focuses on the shifted/displaced diffusion version. Using this version, the author develops basic ideas about construction, change of measure, correlation, calibration, simulation, timeslicing, pricing, delta hedging, barriers, callable exotics (Bermudans), and vega hedging. Subsequent chapters address cross-economy BGM, the adaptation of the BGM model to inflation, a simple tractable stochastic volatility version of BGM, and Brazilian options suitable for BGM analysis. An appendix provides notation and an extensive array of formulae. The straightforward presentation of various BGM models in this handy book will help promote a robust, safe, and stable environment for calibrating, simulating, pricing, and hedging interest rate instruments.

Frequently Asked Questions

How many pages are in Engineering BGM?

This edition of Engineering BGM has approximately 240 pages. Please note, this is an estimate and the exact page count can vary between hardcover, paperback, and e-book versions.

How long does it take to read Engineering BGM?

For most readers, Engineering BGM typically takes between 5h 0m and 3h 20m to complete. This is based on the book's length of approximately 60,000 words and common reading speeds.

Here's a detailed breakdown: • Continuous reading at 250 WPM: approximately 4h 0m of focused reading • Casual reading (30 minutes/day): you could finish in roughly 8 days • Estimated word count: 60,000 words

Your individual reading time will vary based on your personal reading pace, the amount of daily reading time, and your familiarity with the subject matter.

What is the word count of Engineering BGM?

The estimated word count for Engineering BGM is approximately 60,000 words. This figure is calculated using industry-standard methods that consider genre-specific word density patterns, typical formatting and layout characteristics, and standard words-per-page ratios for published books.

This is an approximation — actual word count may vary based on font size, formatting, edition, and the presence of illustrations or charts.

Who is the author of Engineering BGM?

Engineering BGM was written by Alan Brace.

When was Engineering BGM published?

The publication date for this specific edition is 2019. The original work may have been published on a different date.