๐”– Bobbio Scriptorium
โœฆ   LIBER   โœฆ

HEDGING FIXED-RATE PREFERRED STOCK INVESTMENTS

โœ Scribed by Austin Murphy


Book ID
111353400
Publisher
John Wiley and Sons
Year
2001
Weight
197 KB
Volume
14
Category
Article
ISSN
1078-1196

No coin nor oath required. For personal study only.


๐Ÿ“œ SIMILAR VOLUMES


Valuing and hedging fixed rate mortgage
โœ Brian A. Maris; Harry L. White ๐Ÿ“‚ Article ๐Ÿ“… 1989 ๐Ÿ› Springer US ๐ŸŒ English โš– 548 KB

A fixed rate loan commitment that is binding on the lender but not on the loan applicant is equivalent to a put option. This article uses the Black-Scholes option pricing model to establish a value for fixed rate loan commitments and to derive the hedge ratio for the lending institution to hedge the