{"product_id":"pricing-default-and-prepayment-risks-of-fixed-rate-mortgages-in-turkey-von-ozgenay-cetinkaya","title":"Pricing Default and Prepayment Risks of Fixed Rate Mortgages in Turkey","description":"\u003cp\u003eThe mortgage system has been used for many years in  many countries of the world. Although the system has  undergone many changes over the passing years, the  basics remain the same. So, it can be thought that  the earlier systems form the basis of today''s  mortgage system even though it represents some  differences in practice among the countries.  However, this system is very new for Turkish  financial market as compared with developed  countries. The aim of this study is estimating the  default and prepayment risk of mortgage contract and  pricing the contract in emerging markets like Turkey. In this study, a classical option pricing technique  based on Cox, Ingersoll and Ross is used in  order to evaluate Turkish fixed-rate mortgages. The  model evaluates the embedded options,  namely prepayment and default options, and the  future payments which corresponds to the mortgage  monthly payments. Another aim of this study is the  pricing of mortgage insurance policy which has not  been used yet in Turkish mortgage market but thought  as potential derivative in this market. Therefore,  the model used in the study also provides values for  mortgage insurance policy.\u003c\/p\u003e\u003cdiv class=\"aw-variant-hidden-subtitle-div\" id=\"aw-variant-subtitle-9783838388809\"\u003e\u003ch3\u003eAn Application of Explicit Finite Difference Method\u003c\/h3\u003e\u003c\/div\u003e","brand":"Autorenwelt Shop","offers":[{"title":"Softcover - 9783838388809","offer_id":39498897358941,"sku":"9783838388809","price":49.0,"currency_code":"EUR","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0940\/0622\/files\/c1292277-9c22-4f6f-a9ea-d5eb722d557f.jpg?v=1758256984","url":"https:\/\/shop.autorenwelt.de\/products\/pricing-default-and-prepayment-risks-of-fixed-rate-mortgages-in-turkey-von-ozgenay-cetinkaya","provider":"Autorenwelt Shop","version":"1.0","type":"link"}