It has been claimed that a bank loan commitment has an isomorphic correspondence with a common stock

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It has been claimed that a bank loan commitment has an isomorphic correspondence with a common stock put option. How valid is this claim?

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Contemporary Financial Intermediation

ISBN: 9780124052086

4th Edition

Authors: Stuart I. Greenbaum, Anjan V. Thakor, Arnoud Boot

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Question Posted: Jan 17, 2024 03:00 AM

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It has been claimed that a bank loan commitment has an isomorphic correspondence with a common stock

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This claim is valid since the custome...View the full answer

Contemporary Financial Intermediation

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