Lin, Jyh-Horng; Chen, Shi; Huang, Fu-Wei - In: International Journal of Managerial Finance 15 (2019) 1, pp. 2-18
Purpose: The purpose of this paper is to develop a capped barrier option framework to consider the politically preferential treatment for bank loans incentivized by government capital injections and calculate loan-risk sensitive insurance premiums. Design/methodology/approach: This paper takes...