Acta mathematica scientia,Series B ›› 2005, Vol. 25 ›› Issue (2): 243-247.

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OPTIONS-GAME ANALYSIS FOR FIRM WITH INSURED DEBT

 MEI Zheng-Yang, LI Chu-Lin   

  • Online:2005-04-20 Published:2005-04-20
  • Supported by:

    Financial support from the National Natural Science Foundation of China (70271069).

Abstract:

The strategic model for insured bond of firm is a new model which is developed
based on options pricing model and game theory. When firm’s bond was insured against
bankruptcy, some interesting results about endogenous bankruptcy and optimal capital
structure are obtained.

Key words: Insured bond, endogenous bankruptcy;optimal capital structure

CLC Number: 

  • 34A05
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