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In financial mathematics, the Black–Karasinski model is a mathematical model of the term structure of interest rates; see short-rate model. It is a one-factor model as it describes interest rate movements as driven by a single source of randomness. It belongs to the class of no-arbitrage models, i.e. it can fit today's zero-coupon bond prices, and in its most general form, today's prices for a set of caps, floors or European swaptions. The model was introduced by Fischer Black and Piotr Karasinski in 1991.

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