Lecture 11 van der Ende

Question 1

Offer option

Answer 1

Offer option: Mortgage offered rate to be valid up to 12 months, and automatically lowered if market rates dropped

Question 2

“Repricing option”:

Answer 2

Repricing option”: In year year 9/10 clients could reprice at market rates at their request

Question 3

Prepayment option:

Answer 3

repayment option: 10% per year prepayment without penalty allowed

Question 4

What is the take away of Example: “repricing option” in mortgages

Answer 4

Do not under- or overestimate the rationality of your clients/biases in marketing…

Question 5

What is the take away of Example: listed versus private markets valuations for the same type of assets
Example: value adjustments and changes in appraisers

Answer 5

Try to see through the biases in price and valuation processess in your assets

Question 6

What is the take away of Example: long term leases

Answer 6

Try to see the frame through which information is being presented