The SABR Model is a mathematical framework used to price options, particularly in the context of financial markets. It stands for Stochastic Alpha, Beta, Rho, and is designed to capture the dynamics of implied volatility. The model helps traders and analysts understand how the volatility of an asset changes over time, which is crucial for making informed investment decisions. Developed by Hagan et al. in 2002, the SABR Model is particularly popular in the interest rate derivatives market. It provides a way to model the relationship between the underlying asset's price and its volatility, allowing for more accurate pricing of options and other financial instruments.