Calibration of the Model - 2024.2 English

Vitis Libraries

Release Date
2025-05-14
Version
2024.2 English

In order to correctly use the model, the tenor correlations and volatilities must be calibrated to market data. The correlation and volatilities matrix is an input to the model and can potentially accept any user-defined data, but some common parametric functions are also provided that can generate suitable calibrations.