Rational Pricing of Adjustable Rate Mortgages
- 1 June 1985
- journal article
- Published by Wiley in Real Estate Economics
- Vol. 13 (2) , 117-128
- https://doi.org/10.1111/1540-6229.00344
Abstract
In this paper we develop a general method for valuing adjustable rate mortgages and by producing a set of simulation results, we show that our approach can be implemented. While the simulations are of interest in their own right, we view the approach itself as the major contribution of the paper.Keywords
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