What should Lebanon’s eurobonds be worth?

Quick Summary:

Assume you’ve bought a one-year call option on Microsoft with a strike of $100 when the spot price is $80 and the stock’s volatility is 20 per cent.

More relevantly to the Lebanese eurobond situation, we can also calculate that if the spot price does not budge but volatility rises from 20 per cent to 30 per cent, for example, the owner will double their money.

In other words, the market is now implying a 15 per cent higher probability (in absolute terms) and a 50 per cent higher probability (in relative terms) to the scenario that Lebanon will become a semi-prosperous, semi-peaceful state — even while the Israeli ground operation continues unabated, the country’s economy is paralysed and civilian casualties mount.

---

More Pictures

---

Read Quick SummarySave Time

or

Article Details

Author / Journalist: Oussama Nasr

Category: MarketsFinanceInvesting

Markets: United StatesCubaIsraelNorth KoreaLebanonSudanVietnam

Topics: Hizbollah Cent Political Bonds Country Debt Reforms Option Lebanese Price Lebanon

Source Website Secure: Yes (HTTPS)

News Sentiment: Neutral

Fact Checked: Legitimate

Article Type: News Report

Published On: 2024-10-28 @ 06:00:26 (13 hours ago)

News Timezone: GMT -5:00

News Source URL: ft.com

Language: English

Article Length: 1615 words

Reading Time: 9 minutes read

Sentences: 58 lines

Sentence Length: 28 words per sentence (average)

Platforms: Desktop Web, Mobile Web, iOS App, Android App

Copyright Owner: © Financial Times

News ID: 23279315

View Article Analysis

About Financial Times

Main Topics: MarketsFinanceInvesting

Official Website: ft.com

Update Frequency: 9 posts per day

Year Established: 1888

Headquarters: United States

News Last Updated: 13 hours ago

Coverage Areas: United States

Ownership: Independent Company

Publication Timezone: GMT -5:00

Content Availability: Worldwide

News Language: English

RSS Feed: Available (XML)

API Access: Available (JSON, REST)

Website Security: Secure (HTTPS)

Publisher ID: #3

Publisher Details

Frequently Asked Questions