Binomial option pricing models for real estate development
β Scribed by Shen, Jianfu; Pretorius, Frederik
- Book ID
- 121788760
- Publisher
- Emerald Group Publishing Limited
- Year
- 2013
- Tongue
- English
- Weight
- 209 KB
- Volume
- 31
- Category
- Article
- ISSN
- 1463-578X
No coin nor oath required. For personal study only.
π SIMILAR VOLUMES
## Abstract This article revisits the topic of twoβstate option pricing. It examines the models developed by Cox, Ross, and Rubinstein (1979), Rendleman and Bartter (1979), and Trigeorgis (1991) and presents two alternative binomial models based on the continuousβtime and discreteβtime geometric Br
Subject to legal limitations, the owner of undeveloped real estate can determine both the date and density at which to develop his property. Alternatively, he can abandon his property. The value of these options depends partly on the stochastic evolution through time of the operating revenues and co
This article generalizes the seminal Cox-Ross- binomial option pricing model to all members of the class of transformed-binomial pricing processes. The investigation addresses issues related with asset pricing modeling, hedging strategies, and option pricing. Formulas are derived for (a) replicatin
This article develops a flexible binomial model with a "tilt" parameter that alters the shape and span of the binomial tree. A positive tilt parameter shifts the tree upward while a negative tilt parameter does exactly the opposite. This simple extension of the standard binomial model is shown to co