Strong and flexible domain typing for dynamic E-business
Yigal Hoffner, Simon Field, et al.
EDOC 2004
We study options on short-term leases for capital-intensive equipment performing specific functions and services, such as leases for semi-submersible drilling rigs, marine seismic services, corporate real estate leasing, retail space leasing, and apartment leasing. We quantify the effect of an important factor in pricing options on these services: idle time between consecutive lease contracts. We show that while the expected, discounted value for a contract with options is unique, option prices and option exercise prices must be given with respect to a payment structure for the whole contract. We prove that there exist payment schemes in which prices do not depend on exercise probabilities. We use a simple analytic model to derive closed-form solutions for option prices and illustrate our methodology by pricing options for leasing oil-drilling services in the North Sea.
Yigal Hoffner, Simon Field, et al.
EDOC 2004
John M. Boyer, Charles F. Wiecha
DocEng 2009
G. Ramalingam
Theoretical Computer Science
Maurice Hanan, Peter K. Wolff, et al.
DAC 1976