The Determination of Port Facilities Management Fee with Guaranteed Volume Using Options Pricing Model




Kee-Kuo Chen

Key Words

build-and-lease contract ; guarantee volume ; real options ; black-scholes formula


Journal of Marine Science and Technology

Volume or Term/Year and Month of Publication

13卷1期(2005 / 03 / 01)

Page #

54 - 60

Content Language


English Abstract

This paper proposes a procedure to calculate the port facilities management fee (MF) in a build-and-lease (BL) contract with guaranteed volume (GV). The MF pricing problem exists in the contracts concluded by the lessees of port facilities and harbor bureaus for a long time. The problem is solved by analyzing the property of GV firstly, and then taking the real option approach to find the MF in BL contracts with GV. Finally, to demonstrate the method a real BL contract with GV is provided and its MF is calculated in this paper.

Topic Category 基礎與應用科學 > 海洋科學
工程學 > 市政與環境工程