Real Estate Exotic Options based on Black-Scholes Model (BSM)

Yihang  Dong; Weixin  Zhang; Yixuan  He

doi:10.26689/pbes.v4i3.2187

Yihang Dong University of Sydney, Australia
Weixin Zhang University of Sydney, Australia
Yixuan He University of Sydney, Australia

DOI: https://doi.org/10.26689/pbes.v4i3.2187

Keywords: Real estate, BSM option pricing model, Exotic option pricing

Abstract

This paper analyzed the issue of high housing prices in China in view of exotic options using the traditional BSM and improved it while applying it to the current situation in the real estate market. A certain set time frame in the purchase of the options with real estate prices was designed in the implementation of exotic option pricings to ease the speculative pressures caused by high housing prices.

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