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Missouri University of Science and Technology
Operations Research, Systems Engineering and Industrial Engineering
<p>Lease and rental services -- Prices<br />Pricing<br />Risk management<br />Real options (Finance)</p>
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Full-Text Articles in Engineering
Real Options Modeling And Valuation Of Price Adjustment Flexibility With An Application To The Leasing Industry, Ahmed A. A. Al Sharif
Real Options Modeling And Valuation Of Price Adjustment Flexibility With An Application To The Leasing Industry, Ahmed A. A. Al Sharif
Doctoral Dissertations
"Uncertainty poses not only threats but also opportunities. This study sought to build the scientific foundation for introducing a real options (ROs) methodology for price risk management to the leasing industry. A price risk management that allows for both coping with threats and taking advantage of opportunities. In the leasing industry, fixed rate long-term lease contracts help contract parties stabilize cash flows within volatile markets. The contract's term, however, may be extended long enough that prevent capturing the opportunities of gaining greater profits or reducing expenses. Therefore, the flexibility that enables participants to take advantage of favorable market price is …