SDX Interest Rates Help > What SDX Interest Rates Calculates > Black Model Price

Black Model Price

The Black Model Price (or the theoretical value) is the mid-rate value of the deal as calculated using the Black model based solely on the ATM Volatility.

This value can be compared to the Market Price, which is calculated using the SD model.

 

This result is only displayed for options for which the BGM model is supported. For other options the Theoretical Value (%) is displayed instead.