The Real Option Method of Real Estate Exploitation Evaluation
Zhou ChaoHua
DOI:10.11835/j.issn.1674-4764.2005.03.040
Received February 15, 2005,Revised February 15, 2005, Accepted , Available online July 01, 2015
Volume ,2005,Pages 101-105
- Abstract
Real estate exploitations have high risk and its exploitation environment is quite uncertain. The traditional investment value methods, such as the net present value and discount cash flow methods, usually undervalue the real estate value. In this paper the real option pricing theories and methods are applied to discuss real estate investment value under uncertainty. This method provides a new approach for real estate items.