Purchase the Training Pack ($199.00)
to get the recording, transcript, and presentation materials for this webinar in a single download. Please allow up to 30 days after the webinar for the Training Pack to be available.
A loan guarantee is a derivative and should be valued accordingly. The mathematics used in valuing derivatives can be quite daunting. Unlike stock options where the range of possible stock prices at expiration are infinite, with loan guarantees we can choose to operate in a two state world where the underlying loan either defaults or it doesn’t. Therefore in these cases we can simplify the mathematics. Join Gary Schurman for a look at the mathematics of valuing derivatives and how these apply to valuing loan guarantees. With an emphasis on what the math is telling us rather than the mechanics, this event will be illuminating to anyone valuing loan guarantees or derivatives in general.
Program Agenda
Value a loan guarantee in a simple default or no-default world
Add a loss cap to the guarantee
Use a modified version of the Black Scholes model
Discuss when to accept and when to turn down an engagement
Look at a real life example of what not to do
Learning Objectives
Learn how derivatives are priced in a no-arbitrage world
Understand the difference between actual and risk-neutral probabilities
Understand the difference between continuous and discrete time
Learn how to use linear algebra to value a vanilla guarantee in a default or no-default world
Learn how to use a modified version of the Black-Scholes model to value a vanilla guarantee
BVR's Training Packs are an indispensable addition to any valuation reference library. Use them as training tools as many
times as you'd like, wherever you are: play them at your computer at work or home, in your car, or on your personal audio device.
Delivered as an electronic download approximately four weeks after the program has aired, each Training Pack includes:
Recordings and transcripts of the presentation
All presentation visual aids and handouts
All ancillary reading materials suggested by our presenters
If you are ordering a Training Pack after the four week window, the download link will be sent to you immediately via email. Please
check your spam folder and add customerservice@bvresources.com to your “safe list”
to ensure you receive your Training Pack.
Business Valuation Resources offers a 100% money-back guarantee on our training services. If you are not completely satisfied
with your experience, or have any feedback, please contact Business Valuation Resources at 1-503-479-8200 or
customerservice@bvresources.com.
