Understanding Structural Credit Risk Models

In the context of credit analysis and valuation, structural models of credit risk are essential for evaluating the default probabilities of a firm's debt. Consider a firm that operates under a structural credit model framework, where the firm’s asset value, V, follows a stochastic process described by a geometric Brownian motion. The firm has issued a single bond with a face value of F, which matures at time T. The bond defaults if the asset value at maturity, V(T), falls below the face value, F. Given that the model incorporates the underlying volatility of the asset and the framework utilizes market data to calibrate parameters, which of the following statements about structural models is true?