Search Results
| Search type | Search syntax |
|---|---|
| Tags | [tag] |
| Exact | "words here" |
| Author |
user:1234 user:me (yours) |
| Score |
score:3 (3+) score:0 (none) |
| Answers |
answers:3 (3+) answers:0 (none) isaccepted:yes hasaccepted:no inquestion:1234 |
| Views | views:250 |
| Code | code:"if (foo != bar)" |
| Sections |
title:apples body:"apples oranges" |
| URL | url:"*.example.com" |
| Saves | in:saves |
| Status |
closed:yes duplicate:no migrated:no wiki:no |
| Types |
is:question is:answer |
| Exclude |
-[tag] -apples |
| For more details on advanced search visit our help page | |
Results tagged with merton-model
Search options not deleted
user 9265
3
votes
4
answers
9k
views
Why is the value of debt modeled as a short put option in Merton's model?
Can someone give me an intuitive understanding of why the Merton model models the value of the debt from the lender's point of view as a short put with a risk free bond?
I'm not well versed in this s …
- 1,549
2
votes
0
answers
172
views
Future value of the debt under Merton model
The author Malz states the future value of the firm's debt under the Merton model can be found from:
$$
D_{t} = D - \max(D - A_{t} , 0)
$$
(where $D$ is the par value of the debt, $A_{t}$ is the c …
- 1,549