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valuation of debt

This topic has 3 replies, 2 voices, and was last updated 6 years ago by John Moffat.

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October 6, 2018 at 8:24 am #476599
Saimon
Participant
- Topics: 123
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Sir,
can you explain me how black and scholes option pricing can be used to value debt
(i understand the valuation of equity so you don’t have to explain me that part)
October 6, 2018 at 12:00 pm #476615
John Moffat
Keymaster
- Topics: 57
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It is not used to value debt – there are no debt options.
October 8, 2018 at 4:17 pm #476830
Saimon
Participant
- Topics: 123
- Replies: 55
But if i invest in convertable debt instruments then can i use it???
October 8, 2018 at 6:09 pm #476846
John Moffat
Keymaster
- Topics: 57
- Replies: 54500
Option pricing values options. There are share options, but there are not debt options.
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