Stock Options and Credit Default Swaps in Risk Management
Al-Own, B., Minhat, M., & Gao, S. (2018)
Stock Options and Credit Default Swaps in Risk Management. Journal of International Financial Markets, Institutions and Money, 53, 200-214. https://doi.org/10.1016/j.intfin.2017.09.021
The use of stock options and credit default swaps (CDS) in banks is not uncommon. Stock options can induce risk-taking incentives, while CDS can be used to hedge against credi...