Tourism is a growing industry in the Autonomous Region of the Azores. However, little is known about how tourists evaluate this destination, something which certainly constitutes a shortcoming if one takes into consideration that this is a very competitive industry, with new destinations...

The contribution of real options analysis on the valuation of Portuguese undeveloped building sites is significant on the decision making regarding the apartment-buildings construction. Using the options model developed by Quigg (1993), and including the necessary readjustments for the...

This paper concentrates on the application of various time series methods in order to forecast the monthly overnights in Azorean hotels. The aim is to find out the degree to which the forecast of overnights segmented by country of origin, presents smaller errors when compared with the forecast...

In this paper, the optimal timing for investing in high speed rail projects under uncertainty in relation to the utility provided to railway users was investigated. To accomplish this, a continuous time real options analysis framework using a stochastic demand model was developed to determine...

This study aims to evaluate the impact of major and minor changes in the Euro Zone and US interest rates on the EUR/USD exchange rate between 1 January 1999 and 31 December 2020. Therefore, twelve events are analyzed in this period, five related to changes in the US interest rate, six related to...

This paper aims to value a Guaranteed Investment Contract (GIC), offered by insurance companies, with a minimum rate of return and an option to surrender the contract (surrender option) at any time before the maturity date. The valuation framework uses a set of different models to value each one...

The cost of capital is a fundamental concept in strategic decisions such as capital investments, capital structure, new issues, mergers and acquisitions, spin-offs and other corporate restructurings. This paper explores empirically the option-based model developed by Hsia (1991) for estimating...