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Real Estate Options

  • David G. CarmichaelEmail author
Chapter
Part of the Management in the Built Environment book series (MABUEN)

Abstract

Economic, political and other external factors influence the value of real estate or property and the uncertainty in this value. One way of dealing with this uncertainty and associated risk is hedging through options. An option grants the option holder the right, but not the obligation, to typically buy or sell something in the future.

References

  1. 1.
    ASX (2008) Introduction to index futures and options. Australian Stock Exchange, Sydney, viewed 22 March 2018. https://www.asx.com.au/documents/products/intro_to_index_futures_and_options.pdf
  2. 2.
    ASX (2018) Features. Australian Stock Exchange, Sydney, viewed 22 March 2018. https://www.asx.com.au/products/index-options.htm
  3. 3.
    Black F, Scholes M (1973) The pricing of options and corporate liabilities. J Polit Econ 81(3):637–654MathSciNetCrossRefGoogle Scholar
  4. 4.
    Carmichael DG (2014) Infrastructure Investment: an engineering perspective. CRC Press, Taylor and Francis, LondonCrossRefGoogle Scholar
  5. 5.
    Carmichael DG (2016) A cash flow view of real options. Eng Econ 61(4):265–288CrossRefGoogle Scholar
  6. 6.
    Oppenheimer PH (2002) A critique of using real options pricing models in valuing real estate projects and contracts. BriefS R Estate Financ 2(3):221–233CrossRefGoogle Scholar

Copyright information

© Springer Nature Singapore Pte Ltd. 2020

Authors and Affiliations

  1. 1.School of Civil and Environmental EngineeringUNSW AustraliaSydneyAustralia

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