The Hull-White model is a single-factor interest model used to price derivatives. The Hull-White model assumes that short rates have a normal distribution and that the short rates are subject to mean reversion. Volatility is likely to be low when short rates are near zero, which is reflected in a larger mean reversion in the model. The Hull-White model extends the Vasicek Model and Cox-Ingersoll-Ross (CIR) model.
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