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Summary
| Description |
English: Graph showing the expected one-year limited price indexation LPI(0,5) increase as a function of the forward one-year RPI inflation rate under a normal (Bachelier) model. The horizontal axis shows the assumed forward RPI rate. The vertical axis shows the expected capped-and-floored LPI(0,5) increase. The straight truncated line represents the deterministic case with zero volatility. Curved lines show the expected LPI(0,5) rate under different inflation volatility assumptions. Thin horizontal lines mark the floor at 0% and the cap at 5%, and a separate horizontal line at 2.5% shows the limiting expected rate as volatility tends to infinity. |
| Date | |
| Source | Own work |
| Author | Stardust20 |
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| Date/Time | Thumbnail | Dimensions | User | Comment | |
|---|---|---|---|---|---|
| current | 17:55, 24 November 2025 | | 1,000 × 614 (218 KB) | Stardust20 | Uploaded while editing "Black model" on en.wikipedia.org |
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