Sabr: In mathematical finance

In mathematical finance, the SABR model is a stochastic volatility model, which attempts to capture the volatility smile in derivatives markets. The name stands for " stochastic alpha, beta, rho ", referring to the parameters of the model. The SABR model is widely used by practitioners in the financial industry, especially in the interest rate derivative markets. It was developed by Patrick S. Hagan, Deep Kumar, Andrew Lesniewski, and Diana Woodward. [1] Sabr, or patience , is a virtue in Islam that represents perseverance, self-control, and steadfastness in the face of challenges. It is a quality every believer is encouraged to embody because it reflects trust in Allah’s wisdom and timing. What is Sabr? Sabr, commonly translated as " patience " or "perseverance," is an Arabic term that encompasses a broader spectrum of meanings, including endurance, restraint, and maintaining composure amidst adversity. Sabr in Islam is an integral part of a Muslim's life which serves as a strengthening factor for Iman as well. It builds a strong character.