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    STUDIA INFORMATICA - Issue no. 1 / 2003  
         
  Article:   THE LOAN-BANK CONTRACT: A SWAP OPTION.

Authors:  D. AKUME.
 
       
         
  Abstract:  Abstract. This review paper discusses financial options of the European type, particularly swap options and their pricing using the modified Black Model(1976). It also discusses the theory and modelling of Contractual Sav- ing for Housing1 as practiced by German "Bauparkassen". After a discussion of both Option Pricing and Loan Banking, the last part of this paper reveals that a loan-bank contract is in actual fact a financial option on an amortiza- tion swap. The outlook aims at the valuation of such a swaption.  
         
     
         
         
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