What assumption makes the structural model not useful for actual pricing and hedging but makes the reduced-

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What assumption makes the structural model not useful for actual pricing and hedging but makes the reduced- form model appropriate for these activities?

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An Introduction to Derivative Securities Financial Markets and Risk Management

ISBN: 978-0393913071

1st edition

Authors: Robert A. Jarrow, Arkadev Chatterjee

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Question Posted: Dec 02, 2015 04:04 AM

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What assumption makes the structural model not useful for actual pricing and hedging but makes the reduced-

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The structural model or contingent claims models assumes that all of ...View the full answer

An Introduction to Derivative Securities Financial Markets and Risk Management

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