The Libor Market Model is a financial tool used to price and manage complex interest rate derivatives. It is widely used because it aligns with the standard Black’s cap formula, making calibration easier. This book explores the theory behind the model and demonstrates its practical application in pricing various interest rate derivatives. By using Monte Carlo simulation, the model's dynamics are explained, and different volatility and correlation structures are explored. Care must be taken when calibrating the model, as it can significantly impact derivative prices. The book targets finance graduate students and professionals using this model in real-world scenarios. C source code for pricing derivatives with this model is available for order online.