This paper presents a unified model of the default and prepayment behavior of homeowners in a proportional hazard framework. The model uses the option-based approach to analyze default and prepayment and considers these two interdependent hazards as competing risks. The results indicate the...

This paper presents an investigation into the properties of a stochastic process whereby the value of a fund grows arithmetically and decays geometrically over discrete time periods. While this general structure is applicable to many situations, it is particularly prevalent in many casino games....