The Two-Factor Hul-white Model (equation 24.1, page 571) dx=0(0)+u-ax dt +o,dz1 du= -but +o,dz, where=f(r and the correlation between dz, and dz, is p The short rate reverts to a level dependent on u, and u itself is mean reverting
At ordinary temperature, matter exists in one of three states Solid- has a shape and forms a surface Liquid- has no shape but forms a surface Gas-has no shape and forms no surface What do we mean by“ fluids”? F| uids are“ substances that flow