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A reexamination of option values implicit in callable treasury bonds

Article Abstract:

Previous studies which indicate that option values inferred in callable Treasury bonds are negative were reevaluated. Bond month-end prices from August 1991 to April 1993 were plotted using data from Center for Research in Security Prices Government Bond File and the Wall Street Journal. An alternative bond evaluation model which made some 4,000 comparisons of option values, however, determined that option values are positive and that the pricing bound violations were measured at only 3% of trading time.

Treasury securities

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Valuing lease contracts: a real options approach

Article Abstract:

A real-options methodology was used to construct a pricing model for various kinds of lease contracts. The framework of the model is similar to the term structure of interest rates and can be applied to forward leases, lease renewals, calculation of lease insurance premiums and variable-rate leases. The model also considers economic factors such as economic uncertainty and firm competition in determining the dynamics of rent, supply and asset values.

Contracts, Leases

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From cradle to grave: How to loot a 401(k) plan

Article Abstract:

The current regulations governing the distribution of assets from retirement plans need a simple change to prevent exploitation of a loop hole that means that current contributors can suffer a wealth transfer to those retired.

Pension funds, Rollovers (Finance)

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