A firm has assets of $200,000 and total debts of $175,000. With an option pricing model, the

Question:

A firm has assets of $200,000 and total debts of $175,000. With an option pricing model, the implied volatility of the value of the firm’s assets is estimated at $10,730. Under the Moody’s Analytics method, what is the expected default frequency (assuming a normal for assets)? Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...