Export credit insurance premium OECD and option valuation methods comparison | |
| Author | Barik, Ratikanta |
| Call Number | AIT RSPR no.SM-14-03 |
| Subject(s) | Export credit Commercial loans |
| Note | A research study submitted in partial fulfilment of the requirements for the degree of Masters of Business Administration |
| Publisher | Asian Institute of Technology |
| Series Statement | Research studies project report ; no. SM-14-03 |
| Abstract | The purpose of this dissertation is to comput e and compare the export credit insurance premium by option valuation and OECD method. The tools from option pricing theory, Schich model and country risk assessment model for OECD method of premium were used to calculate the premiums. The comparison of pr emiums by both methods is carried out by canonical correlation analysis which is a multivariate statistical tool in SPSS. The canonical correlation coefficients provides evidence that the there is significant magnitude of relationship exists between the tw o premiums computed by two different methods. This research also provides evidence about not only current financial indicators such as debt service ratio, reserves over three months of imports etc but also the volatility of the changes in those positions d etermines the cost of export credit insurance which is premium charged by export credit agencies to traders. This research explains about the relationship between horizon of risk and export credit insurance premium by OECD method. The rise in horizon of ri sk increases the cost of export credit insurance. |
| Year | 2014 |
| Corresponding Series Added Entry | Asian Institute of Technology. Research studies project report ; no. SM-14-03 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Camino, David; |
| Examination Committee(s) | Juthathip Jongwanich;Supasith Chonglerttham; |
| Scholarship Donor(s) | AIT Fellowship; |
| Degree | Research report (M.B.A.) - Asian Institute of Technology, 2014 |