Researchers study the pricing formulas of vulnerable timer options (VTOs) (IMAGE)

Pusan National University

Researchers study the pricing formulas of vulnerable timer options (VTOs)

Caption

A new study by researchers from Pusan National University explores the pricing of VTOs in the context of counterparty risks. Standard timer option prices are overpriced compared to vulnerable ones. However, their study revealed that VTOs can help reduce such investment risks.

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Ji-Hun Yoon from Pusan National University

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