Editing Hull–White model (section)

{{Short description|Model of future interest rates}}
In [[financial mathematics]], the '''Hull–White model''' is a [[mathematical model|model]] of future [[interest rate]]s. In its most generic formulation, it belongs to the class of no-arbitrage models that are able to fit today's term structure of interest rates. It is relatively straightforward to translate the mathematical description of the evolution of future interest rates onto a [[Lattice model (finance)|tree or lattice]] and so [[interest rate derivative]]s such as [[bermudan swaption]]s can be valued in the model.

The first Hull–White model was described by [[John C. Hull (economist)|John C. Hull]] and [[Alan White (economist)|Alan White]] in 1990. The model is still popular in the market today.