What is the goal of prepayment models that use option pricing theory? How do these models differ

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What is the goal of prepayment models that use option pricing theory? How do these models differ from the PSA or empirical models? What criticisms often are directed toward these models?

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Financial Institutions Management A Risk Management Approach

ISBN: 978-0071051590

8th edition

Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders

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Question Posted: Dec 17, 2015 05:15 AM

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What is the goal of prepayment models that use option pricing theory? How do these models differ

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Option models attempt to determine the yield spread of ...View the full answer

Financial Institutions Management A Risk Management Approach

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