Hull-White Model

The Hull-White model is a model of future interest rates used to price derivative securities. It determines interest rates on investments that are, well...investments of investments, or bets on top of bets, as derivatives are dependent on underlying investments.

For you financial mathematics nerds, the Hull-White model is built off of the Vasicek and Cox-Ingersoll-Ross (CIR) models. Like all derivative pricing models, the Hull-White model has its assumptions, including that short rates have a normal distribution.