The construction of martingales with given marginal distributions at given times is a recurrent problem in financial mathematics. From a theoretical point of view, this problem is well-known as necessary and sufficient conditions for the existence of such martingales have been described....

In this paper that is the second part of [1] we outlined basic of foreign exchange and its randomization. We presented a model of forward rate implied by stochastic bond prices. A particular attention is paid to a construction of the LIBOR rate. In our models we distinct stochastic pricing of a...

In this paper, we outline a randomization of the primary fixed income notions. We present a construction of some stochastic interest rate models. We also consider forward rates which are implied by stochastic bond prices. We highlight to major drawbacks of the commonly used stochastic models....