RI UFLA (Universidade Federal de Lavras) >
Revistas UFLA >
Please use this identifier to cite or link to this item:
|Title: ||A REAL OPTIONS APPROACH TO THE DETERMINATION OF OPTIMAL HARVESTING AGE FOR TWO KINDS OF FOREST MANAGEMENT|
|???metadata.dc.creator???: ||Broz, Diego Ricardo|
Woitschach, Guillermo B. M.
|Keywords: ||Binomial grid, shift, exotic option.|
|Other Identifiers: ||http://www.cerne.ufla.br/site/index.php/CERNE/article/view/964|
|Description: || It was studied Real Options approach as a financial-economic tool for strategic decision-making in the determination of optimal harvesting age in two kinds of forestry exploitation, a high-value one and a pulp-producing unit. It is assumed that the projection of selling prices of the byproducts follows a Brownian geometric stochastic process, while production is determined by means of a simulation of forestry turnover. The decision of when to harvest arises from the comparison, at each period, of the cash-flow at each node ( ) of a binomial lattice and its expected value in the next period ( ). The Real Values approach indicates that the optimal ages are at 18 years for high-value units and 17 years for pulp producing ones. |
|Appears in Collections:||CERNE|
Files in This Item:
There are no files associated with this item.
Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.