SAB(rs)cd, or SABR (Stochastic Alpha, Beta, Rho) model, is a mathematical framework used in finance to price options and manage risk. It captures the dynamics of implied volatility, which is crucial for traders and investors in the options market. The model accounts for the changing nature of volatility over time, making it more adaptable to real market conditions. The SAB(rs)cd model is particularly useful for fixed income and equity derivatives, as it provides a more accurate representation of how volatility behaves. By incorporating various parameters, it helps market participants make informed decisions regarding pricing and hedging strategies.