Based on an Option Valuation Method,the EDF Model

Based on an option valuation method,the EDF model:

A) determine if the equity is mispriced.
B) calculate the market value of the lender's investment.
C) estimates the probability that a firm will default over a specified period of time.
D) estimate the likelihood that the Z-score model is correct.
E) estimates the probability that the firm's rating will change over a period of time.