SABR volatility model

The Sabr volatility model is a mathematical way of predicting the price of an asset (like stocks or bonds). It's based on a complicated equation that looks at the overall market volatility and uses that to come up with a price. Basically, the idea is that the price will likely be affected by the amount of movement in the market, so a big movement like a big increase in interest rates could make the price of a stock go up a lot, and a small movement like a small decrease could make the price go down a little bit. The Sabr model helps us to estimate how much those movements will affect prices in the future, so that we can make better decisions about investing our money.