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Strategic Study of CAE >> 2004, Volume 6, Issue 12

Study on Down Knock-in Renewal Option Pricing

1. Jiangsu Financial Leasing Co. , LTD. , Nanjing 210018, China

2. Southeast University, Nanjing 210009, China

Received: 2003-11-07 Revised: 2004-03-10 Available online: 2004-12-20

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Abstract

In this paper, firstly, the basic connotation of modern leasing and the basic principle of real option are dissertated. Then, the down knock-in renewal option pricing model and its solution are put forward. At last, example is provided.

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