Credit Risk and Underlying Asset Risk

초록

This paper develops the credit risk of simple risky bond (Merton 1974) as expected option return to the maturity and analytically presents that the credit risk is influenced by the underlying asset risks. The paper moreover shows that the direction and magnitude of the influence depends on what the underlying asset risks are. Simulation results indicate that the relations between the credit risk and the asset risks are different among asset risks.

키워드

Credit RiskExpected Option ReturnPricing of an OptionPricing of Risky BondRelation between Credit Risk as Expected Option Return and Asset Risk
제목
Credit Risk and Underlying Asset Risk
저자
이종용
DOI
10.35152/snusjb.2018.24.2.002
발행일
2018-12
유형
Y
저널명
Seoul Journal of Business
24
2
페이지
39 ~ 52