The actual market price of that asset might end up being significantly lower than the strike price, but the put option has locked in the sales price. (swanglobalinvestments.com)
The Efficient Markets Hypothesis in its semi-strong form says that the current market price of an asset incorporates all available information about the security in question. (alephblog.com)
The models should try to forecast the fair market prices of assets / collateral, off of estimated future lending conditions, so that at the end of the loan, estimates can be made as to whether loans would be refinanced, extended, or default. (alephblog.com)