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Study On The Method Of Evaluating Mineral Resources Assets Based On Option

Posted on:2004-06-22Degree:MasterType:Thesis
Country:ChinaCandidate:S H ZouFull Text:PDF
GTID:2156360095955703Subject:Business management
Abstract/Summary:PDF Full Text Request
Evaluating mineral resources assets scientifically and rationally is a key and precondition of acquiring and transferring mineral resources assets. At present, the main method of evaluating mineral resources assets is the method of income present value (IPV) . In the practical use of the IPV, interest rates is supposed to be constant; the flexibility of management can be hardly considered, which includes postponing mining, reducing or extending the corporation's scale. All the defects above, the IPV lead to underestimate the value of mineral resources assets easily. It is quit essential to set up new methods which could avoid the IPV's defect. Owning the ownership of mineral resources assets is equal to owning the right to mining or transferring. Because this kind of right is similar to option and regarded as call option, it is logical to draw lessons from the theory of option pricing to evaluate mineral resources assets. The creative work is as follow:(1) setting up a basic model of evaluating mineral resources assets based on the basis of the optionA investment portfolio, consisting of mineral product, mineral resources assets and riskless interest rates, has been structured and a basic model of evaluating mineral resources assets based on option has been set up. The model has been tested and verified in a specific case to show that the value of the coal resources assets evaluated by this model is larger than that by the IPV.(2) setting up a stochastic interest rates model of evaluating mineral resources assets based on the basis of the optionA stochastic interest rates method has been structured and a stochastic interest ratesmethod of evaluating mineral resources assets based on option has been set up. The model has been tested in the same case to prove that it can make further improvement on the evaluation.(3) setting up a stochastic convenience yield model of evaluating mineral resources assets based on the basis of the optionA stochastic convenience yield model has been structured and a stochastic convenience yield method of evaluating mineral resources assets based on option has been set up. The model has been tested in the same case. The value of the coal resources assets evaluated by the stochastic convenience yield model is small than that by the basic model and the stochastic interest rates model.(4) setting up a model of evaluating mineral resources assets based on jump diffusion price in the spotA changing process (jump diffusion) of the mineral product has been structured with the proper combination of Brown process and Passion process, which could reflect the process of mineral product price. A model of evaluating mineral resources assets based on jump diffusion price in the spot has been set up.In a word, the thesis provides four kinds of models of evaluating mineral resources assets based on the basis of the option.
Keywords/Search Tags:Mineral Resources Assets, Option, Evaluating
PDF Full Text Request
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