Option premiums in mineral asset pricing: are they important?
A review of attempts to empirically quantify the “option premium” associated with optimal mineral asset management. The option premium appears to explain at most half of the observed gap between the discounted cash flow value and the market value of mineral assets, and it adds 3 percent at most to...
| Publicado en: | Land Economics Vol. 72; pp. 167 - 187 |
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| Formato: | Artículo |
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University of Wisconsin Press
May 1996
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| Acceso en línea: | Ver este registro en EBSCOhost |
| Sumario: | A review of attempts to empirically quantify the “option premium” associated with optimal mineral asset management. The option premium appears to explain at most half of the observed gap between the discounted cash flow value and the market value of mineral assets, and it adds 3 percent at most to the gross worth of a mineral asset. Asset management option premiums thus have only a second-order effect on mineral asset pricing. |
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