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Rosenberger, Werner

Risk-adjusted Lending Conditions: An Option Pricing Approach

Rosenberger, Werner - Risk-adjusted Lending Conditions: An Option Pricing Approach, ebook

133,90€

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ISBN: 9780470859179
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Printing86 pages with an additional page accrued every 9 hours, capped at 86 pages
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In order to operate their lending business profitably, banks must know all the costs involved in granting loans. In particular, all the expenses they incur in covering losses must be included. Provided loan risks can be calculated, it is possible in each case to charge a price that is appropriately adjusted for risk, thus making it possible to make high-risk loans.

In "Risk-adjusted Lending Conditions" the author presents a model, to measure and calculate loan risks, showing how it functions and how it may be applied. His approach has its origins in the ideas put forward by Black/Scholes in 1973, and thus owes much to option price theory. From this the author has succeeded in developing a solution such that, whatever a company's debt position and however its balance sheet may be structured, any situation can be individually assessed. Building on this, he demonstrates how combinations of loans with the lowest possible interest costs can be tailor-made for any company. The book contains numerous examples, making it easy for practising bankers to see how the model may be applied

Keywords: BUSINESS & ECONOMICS / Finance BUS027000

Author(s)
Publisher
John Wiley and Sons, Inc.
Publication year
2003
Language
en
Edition
1
Series
The Wiley Finance Series
Page amount
286 pages
Category
Economy
Format
Ebook
eISBN (PDF)
9780470859179
Printed ISBN
9780470847527

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