The Real Estate Option Pricing Model With The Term Structure Of Interest Rate

With the development of world economy and the development of Chinese economy, the investment is becoming more and more active. If the enterprise want to gain more in the field of investment,it must strengthen the effectiveness of project investment evaluation, improve the competitiveness of enterprises. So that looking for a set of effective project evaluation theory has important theoretical and practical significance. And how to improve the precision of the method and theory is of great significance.Option pricing theory is one of the greatest discovery of finance in the twentieth century, the uncertainty factors in value evaluation of thoughts can be widely used to project assessment in various fields. When putting an option pricing theory into project evaluation or business decisions, it became the real option theory. Real option theory is the extension of options theory, it not only enrich the connotation of options theory,but also provide a new method and a new thought for the project evaluation and project decision, sometimes it become a new solution tools for lessening the costs even.Based on the analysis of real estate project ever value evaluation of the traditional method of uncertainty of the value of neglect, and the lack of attention to the long-term nature of the real estate project because the existence of interest rate risk. Above all the author firstly find out the term structure of interest rates of the project assessment model. In the simulation of the term structure of interest rates, considering the real estate real options need sensitive risk interpretation, and considering the follow-up project decision need the reliable data reference, this paper in the simulation of the term structure of interest rate on the use of a data changes to the most sensitive spline function method, thus effectively solve the interest rate risk to the sensitivity of the question.In the process of pricing model, this paper use financial option pricing method, has solved the term structure of interest rates binomial-tree pricing model, and the new has the term structure of interest rate of the binomial tree to apply to the actual project assessment. And by the example analysis demonstrates the real options in the value of the project evaluation using quantitative analysis, this paper expounds the term structure of interest rate has the scientific nature of real options, and proves that the term structure of interest rates real estate real option improved the precision of the project assessment.At the same time, this paper also in the current real estate’s with the severe situation, put forward the concrete has the term structure of interest rates of real estate project in real options, and expounds on the project involved in options principle and pricing process demonstrate the real option theory also have become truly can service projects, and become a tool to less the costs..The study will help the real option theory to project assessment level and practical tools level, the application of the evaluation of previous projects to improve accuracy problem. Perfect the real option theory in the physical, the application of is not only as thought, still can become a avoid risk of practical tools. So that the project investors or company decision makers accurate evaluation of the value of the project, avoid uncertainty risk, increase the investment efficiency from the microcosmic level to improve Chinese real estate project of the status.