Open figure viewer
This paper start from the question that value of right which is arose from real asset trade. First, organizing option portfolio using this right, then we investigate the correlation about real assets and contracted prices. The results are as follows. When a market is in equilibrium, the call-option value which is owned by seller is greater than the put-option value which is owned by buyer. As a result, present value of contract price is lower than the true value of the asset. Furthermore, this phenomenon is getting deepen when volatility of real estate is greater, expiration date is longer and interest rate is higher.
© 2014 Emerald Publishing Limited
2014
This article is published under the Creative Commons Attribution (CC BY 4.0) licence. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this licence may be seen at http://creativecommons.org/licences/by/4.0/legalcode
