The classic contingent-claims pricing model views the borrower’s right to default ona mortgage as a put option. By defaulting on a mortgage the borrower effectivelysells the property to the lender with the current value of the mortgage. The primarygoal of this dissertation is to develop a...

The beta value, an indicator of systematic risk, is used to estimate the costs of equity and the evaluation of a stock's reasonable price. It is useful to airlines because their capital assets and operations are relatively sensitive to systematic risks. To obtain better estimates, it is useful...