Residential Mortgage Probability of Default Models and Methods
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چکیده
منابع مشابه
Woodhead Behavior and the Pricing of Residential Mortgages by
Option theory which has dominated residential mortgage prepayment and default research implies that a borrower will exercise prepayment or default options if the call option or put option, respectively, is "in the money" by some optimal amount. Empirical research provides evidence that the financial value of the call option is strongly associated with exercise of the prepayment option, and the ...
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