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Hello,Does anyone have an excel spreadsheet designed to price prepayment options on loans, I'm look for something quit easy to understand. I've read somewhere that it could be likened to an American call option ?Thanks for your precious help.

Any help please?

Prepayment is too broad and complicated a topic to ask for a generic spreadsheet solution. There are a few different approaches. Some treat prepayment as a stochastic hazard process and solve for the optimal prepayment strategy, which is what you mentioned ("likened to an American call option"). This doesn't always make sense because in real life prepayment decisions are not always made optimally. An alternative approach is to model prepayment explicitly as a function of some other observable variables such as interest rate, yield spread, loan maturity etc.I have only dealt with mortgage prepayment but not loan, so judge for yourself if this is relevant.

if you have a loan, you are making a series of payments like a bond.If you can prepay, that is like a call option of the bondIf you can only prepay on fixed dates, that is bermudan or european, if you can prepay any date, that is american