Question

1) The Ohlson model is:
A. A univariate model of credit default
B. A contingent claim model
C. A discriminant model that calculates default probability
D. A discriminant model that calculates a score called the O-score

2) The current credit rating market:
A. Has shifted to a hybrid model after the passing of the Dodd-Frank act
B. Has shifted to a market-pays model after the passing of the Dodd-Frank act

C. Has shifted to an investor-pays model after the passing of the Dodd-Frank act

D. Is by and large unchanged and structured as an issuer-pays model

Answer 1

1. D. A discriminant model that calculates a score called the O-score . (Factual)

I can only answer 1 question at a time, so I am answering only question 1.
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