In the Libor Market Model (LMM) which of the following is not a beneficial feature of the model?
A) The LMM only requires one factor for each rate.
B) The model is easily calibrated to the Black model caplet/floorlet prices.
C) The evolution of Libor rates is modeled directly.
D) It is easily implemented on a recombining tree.
Correct Answer:
Verified
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