English

A general proof of the Dybvig-Ingersoll-Ross-Theorem: Long forward rates can never fall

Probability 2007-05-23 v2

Abstract

A general proof of the Dybvig-Ingersoll-Ross Theorem on the monotonicity of long forward rates is presented. Some inconsistencies in the original proof of this theorem are discussed.

Keywords

Cite

@article{arxiv.math/0112230,
  title  = {A general proof of the Dybvig-Ingersoll-Ross-Theorem: Long forward rates can never fall},
  author = {Friedrich Hubalek and Irene Klein and Josef Teichmann},
  journal= {arXiv preprint arXiv:math/0112230},
  year   = {2007}
}