22,4 Main approaches to Pricing Interest Rate Options Use a variant of blacks model Use a no-arbitrage ( yield curve based)model Options, Futures, and other Derivatives, 5th edition 2002 by John C. HullOptions, Futures, and Other Derivatives, 5th edition © 2002 by John C. Hull 22.4 Main Approaches to Pricing Interest Rate Options • Use a variant of Black’s model • Use a no-arbitrage (yield curve based) model