Wang, Jenny Jing; Shen, Jianfu; Pretorius, Frederik - In: Financial innovation : FIN 9 (2023) 1, pp. 1-35
In this study, we develop and empirically test a valuation model for a commonly encountered option in office leases: a tenant's option to renew at future market rent (a fair market value) with lease termination as the maturity date. The model integrates decision analysis with real options...