A reexamination of option values implicit in callable treasury bonds
Article Abstract:
Previous studies which indicate that option values inferred in callable Treasury bonds are negative were reevaluated. Bond month-end prices from August 1991 to April 1993 were plotted using data from Center for Research in Security Prices Government Bond File and the Wall Street Journal. An alternative bond evaluation model which made some 4,000 comparisons of option values, however, determined that option values are positive and that the pricing bound violations were measured at only 3% of trading time.
Publication Name: Journal of Financial Economics
Subject: Economics
ISSN: 0304-405X
Year: 1995
User Contributions:
Comment about this article or add new information about this topic:
Valuing lease contracts: a real options approach
Article Abstract:
A real-options methodology was used to construct a pricing model for various kinds of lease contracts. The framework of the model is similar to the term structure of interest rates and can be applied to forward leases, lease renewals, calculation of lease insurance premiums and variable-rate leases. The model also considers economic factors such as economic uncertainty and firm competition in determining the dynamics of rent, supply and asset values.
Publication Name: Journal of Financial Economics
Subject: Economics
ISSN: 0304-405X
Year: 1995
User Contributions:
Comment about this article or add new information about this topic:
From cradle to grave: How to loot a 401(k) plan
Article Abstract:
The current regulations governing the distribution of assets from retirement plans need a simple change to prevent exploitation of a loop hole that means that current contributors can suffer a wealth transfer to those retired.
Publication Name: Journal of Financial Economics
Subject: Economics
ISSN: 0304-405X
Year: 2000
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: The reaction of household consumption to predictable changes in social security taxes. Consumption risk and expected stock return
- Abstracts: Triangular representation and error correction mechanism in cointegrated systems. A reconciliation of some paradoxical empirical results on the expectations model of the term structure
- Abstracts: Information and transaction costs as the determinants of tolerable growth levels. What are the lessons from history?
- Abstracts: The dismantling of CONASUPO, a Mexican state trader in agriculture
- Abstracts: The case for randomized field trials in economic and policy research. Fighting poverty: lessons from recent U.S. history