Open AccessReal Estate Exotic Options based on Black-Scholes model (BSM)
Author(s) -
Yihang Dong,
Pengyun Wang,
Weixin Zhang,
YaLing He
Publication year - 2021
Publication title -
proceedings of business and economic studies
Language(s) - English
Resource type - Journals
eISSN - 2209-265X
pISSN - 2209-2641
DOI - 10.26689/pbes.v4i3.2187
Subject(s) - real estate , exotic option , black–scholes model , financial economics , frame (networking) , business , economics , finance , computer science , valuation of options , volatility (finance) , telecommunications
This paper analyzed the issue of high housing prices in China in view of exotic options using the traditional BSM and improved it while applying it to the current situation in the real estate market. A certain set time frame in the purchase of the options with real estate prices was designed in the implementation of exotic option pricings to ease the speculative pressures caused by high housing prices.