The Application Of Real-Option Pricing Theory In The Rural Land Requisition Assessment

With the urbanization process in China greatly advanced, a lot of social problems were caused by rural land requisition. A focus problem is that how to set a reasonable price of the rural land which farmers lived on. Technically, the compensation paid to farmers should be set by some multiple of yearly output of the land, which should be less than thirty times. Or, based on a newly issued article, compensation should be computed by a synthetically pricing method. However, those compensation standards are either incomplete or reasonless.By analyzing the rural policy and special situation, this paper brought forward a real-option method to set the compensation standard. The thesis analyzed the defect of net present value method and used the real-option method rebuild the rural land pricing model.Based on the academic model, this paper also combined the theory with the practice in Zhejiang province. Using the real numbers of this province, the paper got a conclusion that the traditional compensation method underestimates the rural land price. Also, this paper analyzed the new synthetically regional land price policy of Jiangcun village, compared the real-option model result with the real policy price, demonstrate the rationality of the real-option pricing model.In the end, grounding on the real option analysis, to make the rural land value externalize on the price, this paper gave some suggestion, including: to promote the use right market; to build a complete social security system; to advance the technology of agricultural method; to build a related financial market and so on.