The paper studies the default probabilities of the 47 Indian firms over period of 2007 to 2013. This study uses options based method to predict the probability of default of these firms over the assessment period. We has used Black, Scholes and Merton model in this paper. The study estimates the...

The paper studies the default probabilities of the 47 Indian firms over period of 2007 to 2013. This study uses options based method to predict the probability of default of these firms over the assessment period. We has used Black, Scholes and Merton model in this paper. The study estimates the...

Default by corporate is problem of concern for banking and financial services industry along with economy. Timely prediction of default is imperative for the bankers and regulators to devise and take preventive actions. There has been large numbers of studies across the world and in India too...