Choi, Kyung Jin; Lim, Byungkwon; Park, Jaehwan - In: International Journal of Financial Studies : open … 8 (2020) 3/55, pp. 1-14
This study explored the option value embedded in a reverse mortgage in Korea through an empirical analysis, using the Black-Scholes option-pricing model. The value of a reverse mortgage is affected by the variation in house prices. However, older homeowners using reverse mortgages are able to...
