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: 9780073530758

7th Edition

Authors: Anthony Saunders, Marcia Cornett

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Question Posted: Jul 24, 2024 08:05 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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Financial Institutions Management A Risk Management Approach

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