The DOI matches its Crossref record; 1 of the 1 references it cites were found in a registry or an index.
Option Valuation of Claims on Real Assets: The Case of Offshore Petroleum Leases
Abstract
This paper extends financial option theory by developing a methodology for the valuation of claims on a real asset: an offshore petroleum lease. Several theoretical and practical problems, not present in applying option pricing theory to financial assets, are addressed. Most importantly, we show the necessity of combining option pricing techniques with a model of equilibrium in the market for the underlying asset (petroleum reserves). The advantages of this approach over conventional discounted cash flow techniques are emphasized. The methodological development provides important insights for both company behavior and government policy. Promising empirical results are reported.
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Citations
Cites
The pricing of options and corporate liabilities
Black, F., & Scholes, M. (1973) · Journal of Political Economy · doi:10.1086/260062 · Cited by 29,074
Cited by
Investor valuation of the abandonment option
Berger, P. G., Ofek, E., & Swary, I. (1996) · Journal of Financial Economics · doi:10.1016/0304-405x(96)00877-x · Cited by 641
Sandri, S., Schade, C., Mußhoff, O., & Odening, M. (2010) · Journal of Economic Behavior & Organization · doi:10.1016/j.jebo.2010.02.011 · Cited by 113
Strategizing carbon-neutral mines: A case for pilot projects
Power, I., McCutcheon, J., Harrison, A., Wilson, S., Dipple, G., Kelly, S., Southam, C., & Southam, G. (2014) · Minerals · doi:10.3390/min4020399 · Cited by 87
Learning to Wait: A Laboratory Investigation
OPREA, R., FRIEDMAN, D., & ANDERSON, S. T. (2009) · Review of Economic Studies · doi:10.1111/j.1467-937x.2009.00543.x · Cited by 65
Metadata
- Authors
- Paddock, J. L., Siegel, D. R., & Smith, J. L.
- Venue
- The Quarterly Journal of Economics
- Publisher
- Oxford University Press (OUP)
- Published
- 1988-08
- Volume
- 103
- Issue
- 3
- Pages
- 479
- ISSN
- 0033-5533 (ISSN-L)
- OpenAlex
- W2059757952
- Cited by
- 811
- References
- 1
- FWCI
- 17.58
- Type
- journal article
- Language
- en
- Open access
- closed
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- CoChat. (2026). Citation check: Option Valuation of Claims on Real Assets: The Case of Offshore Petroleum Leases. https://app.cochat.ai/papers/10.2307/1885541
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- Paddock, J. L., Siegel, D. R., & Smith, J. L. (1988). Option Valuation of Claims on Real Assets: The Case of Offshore Petroleum Leases. The Quarterly Journal of Economics. https://doi.org/10.2307/1885541
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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
