Valuating land development project by n-fold sequential compound option pricing model: A case study of Real Estate development in Hubei province
|關鍵字:||房地產開發投資案;專案評價;多層複合選擇權評價模型;real estate development;financial evaluation;n-fold sequential compound option|
Real estate is known as a high-yield industry, but its attendant high risk, especially financial risk should be on high alert. How to reasonably assess the financial risks of real estate development projects, and actively control the risk of land development companies is extremely important. Nowadays, real estate land development is based on multi-phase development mode. Only when the feasibility of each period is carefully analyzed, the investment risks and other issues can be better deal with. However, the cash flow method used in traditional real estate investment analysis often ignores the differences between phases, and It is difficult to reasonably evaluate the multi-phase real estate development case. The n-fold sequential compound option pricing model considers multi-phase real estate development case as a compound option, and it provides a better solution to the complex multi-period real estate development evaluation, which makes this complex issue reasonably solved. This paper will use this model in an actual multi-phase real estate development case, in order to get a reasonable answer for the practical.
|Appears in Collections:||Thesis|