Showing 1 - 10 of 883
Derivatives on real estate indices have the potential to increase effectively the liquidity of real estate as an asset class. A well-functioning market for real estate derivatives will help diversify investment markets since real estate derivates allow investors to change synthetically and...
Persistent link: https://www.econbiz.de/10013010738
This paper aims to show that the accuracy of real estate portfolio valuations and of real estate risk management can be improved through the simultaneous use of Monte Carlo simulations and options theory. Our method considers the options embedded in Continental European lease contracts drawn up...
Persistent link: https://www.econbiz.de/10013105113
developed for pricing real estate derivatives with stochastic interest rate. To obtain a computationally simple binomial tree … used to enhance the convergence of the discrete binomial lattice models to continuous models when pricing European options …. In addition, our smooth convergent models can also be applied to pricing American options …
Persistent link: https://www.econbiz.de/10012946171
techniques. The resulting index behavior can easily be analyzed and closed-form pricing solutions are derived for forwards, swaps …
Persistent link: https://www.econbiz.de/10013149012
update rule by Blundell and Ward (1987). The resulting index behavior can easily be analyzed and closed-form pricing …
Persistent link: https://www.econbiz.de/10012906100
In 2009 the Frankfurt based Eurex traded the first property future. Eurex is the international derivatives exchange and is jointly owned by Deutsche Börse AG and SWX Swiss Exchange. Consequently, returns on commercial property are now available in an exchange environment within Europe. The...
Persistent link: https://www.econbiz.de/10013153331
There is a great instrument to diversify a real estate portfolio quickly and cost effectively: Derivatives on real estate indices! Furthermore, derivatives have a very important hedging function. The global financial crisis has underlined the importance of better risk management. Consequently,...
Persistent link: https://www.econbiz.de/10012961713
Persistent link: https://www.econbiz.de/10011578937
Persistent link: https://www.econbiz.de/10011800389
Persistent link: https://www.econbiz.de/10011873966