APFinancial Jobs - Irrelevance result
The Modigliani and Miller theorem that a firm's capital structure is
irrelevant to the firm's value.
Irrational call option
The implied call imbedded in a MBS. Irrational because the call is
sometimes not exercised when it is in the money (interest rates are below
the threshold to refinance), and sometimes exercised when it is not in the
money. Option exercise like this affects payments on the MBS.
Regards, APFinancial Jobs
Received on Mon Jan 14 2008 - 10:28:12 EST
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