Validation of RFR Bermuda Swaption Priced with Hull-White model
The transition from InterBank Offered Rates (IBORs) to Risk-Free Rates (RFRs) represents one of the most significant shifts in modern financial markets. This transition addresses concerns about the reliability and transparency of IBORs by adopting benchmarks based on actual market transactions. However, this change has far-reaching implications for the valuation of complex financial instruments, s