Valuing a forest as a call option: The sale of forestry corporation of New Zealand

Forest Science

Volumn 46, Issue 1, 2000, Pages 32-39

  Hughes, Warren R ^a  

^a UNIVERSITY OF WAIKATO   (New Zealand)

Author keywords

And log price volatility; Black and Scholes formula; Call option pricing; Forest value sensitivity to cost of capital

Indexed keywords

EID: 0033973724     PISSN: 0015749X     EISSN: None     Source Type: Journal    
DOI: None     Document Type: Article

References (12)

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3. COX, J.C., S.A. ROSS, AND M. RUBINSTEIN. 1979. Option pricing: A simplified approach. J. Financ. Econ. 7 (October):229-263.
4. FISHER, A.B. 1995. Creating stockholder wealth. Fortune 132 (12):63-72.
5. HUGHES, W.R. 1987. Forest valuation using option pricing theory. The University of Waikato, Working Papers in Economics 87(2). 14 p.
6. HULL, J.C. 1997. Options, futures, and other derivatives. Ed. 3. Prentice-Hall, NJ. 572 p.
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8. PLANTINGA, A.J. 1998. The optimal timber rotation: An option value approach. For. Sci. 44 (May): 192-202.
9. REED, W.J., AND R.G. HAIGHT. 1996. Predicting the present value distribution of a forest plantation investment. For. Sci. 42 (3):378-388.
10. TRIGEORGIS, L. 1996. Real options. The MIT Press, Cambridge, MA. 427 p.
11. ZINKHAN, F.C. 1990. Option pricing: Timber and timberland valuation. Southeast. Cent. for For. Econ. Res., Research Triangle Park, NC. SCFER Working Pap. No. 66. 25 p.
12. ZINKHAN, F.C. 1995. Forest economics: The management of options and values. J. For. 93(1):25-29.