Black-Karasinski Tree Setup

Propagate Black-Karasinski interest-rate tree

Setup a Black-Karasinski interest-rate tree model.

Functions

`bktimespec`	Specify time structure for Black-Karasinski tree
`bktree`	Build Black-Karasinski interest-rate tree
`bkvolspec`	Specify Black-Karasinski interest-rate volatility process

Understanding Interest-Rate Tree Models
Financial Instruments Toolbox™ supports the Black-Derman-Toy (BDT), Black-Karasinski (BK), Heath-Jarrow-Morton (HJM), and Hull-White (HW) interest-rate models.
Use treeviewer to Examine HWTree and PriceTree When Pricing European Callable Bond
This example demonstrates how to use treeviewer to examine tree information for a Hull-White tree when you price a European callable bond.
Overview of Interest-Rate Tree Models
Financial Instruments Toolbox computes prices and sensitivities of interest-rate contingent claims based on several methods of modeling changes in interest rates over time.