# Densities, risk-neutral densities (RNDs)

- Canonical URL: https://www.gerhardmerk.de/densities-risk-neutral-densities-rnds
- Post ID: 591676
- Modified: 2023-07-25T20:59:45+00:00
- Language: en

## Definition

One of the measures used to assess movements in EURIBOR. Forward contracts based on EURIBOR are assumed. The model then assumes that market participants are risk-neutral. The part of the interest rate that is to be regarded as the risk premium is then calculated from the rates actually paid on the market. - Cf. ECB Monthly Bulletin, February 2008, p. 86 (explanation; overview). Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

## Machine-readable

- Generator: Merk Knowledge 1.1.1