The way to calibrate Merton's mode is to compare the model value of ___________ with the observed value from the data.

	a.	Volatility of the firm's assets
	b.	Credit Spread
	c.	Recovery
	d.	Risk-neutral probability of default

What model is better suited for pricing a swing option?

	a.	Binomial, because it is easiest to implement
	b.	Black-Scholes, because the assumptions of the model hold for swing options
	c.	Black-Scholes, because swing options are European options
	d.	Binomial, because it accommodates the possibility of early option exercise