Contracts as Options: Some Evidence from Condominium Developments
用Black-Scholes模型评估购房合同中的期权价值，并用公寓销售数据检验该期权是否被合理定价，发现行业固定收费做法与模型预测基本一致。
This paper values the real estate option to purchase contract in a contingent claims framework. The model is an application of the Black and Scholes option pricing model. Observed market data on the sale of condominiums are used to test if the option is competitively priced under various assumptions regarding the expected instantaneous variance of the condominium price. Simulation results suggest that standard industry practices of charging a fixed amount for the option to purchase roughly conform to pricing behavior dictated by the option pricing model.