Pricing and Net Profit of Operating Lease

Managerial Finance - Volume 35, Issue 10, 2009, pp. 828-840

19 Pages Posted: 5 May 2013

See all articles by Enrico Moretto

Enrico Moretto

Dipartimento di Economia, Metodi Quantitativi e Strategie di Impresa - Università di Milano-Bicocca, Milano, Italia; Università di Milano-Bicocca; CNR - IMATI; University of Insubria - Department of Economics

Giulio Tagliavini

University of Parma - Dipartimento di Economia

Date Written: May 4, 2009

Abstract

This paper analyzes the impact of the so-called “asset risk” on optimal management of operating lease. We propose a tool to debunk some common mistakes in determining the value at which the leased asset can be retained by the lessee by paying a predetermined amount at contract maturity.

Keywords: lease, asset risk, option pricing theory

JEL Classification: G12, G21

Suggested Citation

Moretto, Enrico and Tagliavini, Giulio, Pricing and Net Profit of Operating Lease (May 4, 2009). Managerial Finance - Volume 35, Issue 10, 2009, pp. 828-840, Available at SSRN: https://ssrn.com/abstract=2260692

Enrico Moretto (Contact Author)

Dipartimento di Economia, Metodi Quantitativi e Strategie di Impresa - Università di Milano-Bicocca, Milano, Italia ( email )

Piazza dell'Ateneo Nuovo 1
Milano, Milano 20126
Italy

HOME PAGE: http://https://www.unimib.it/enrico-moretto

Università di Milano-Bicocca ( email )

Piazza dell'Ateneo Nuovo 1
Milano, MI 20126
Italy

HOME PAGE: http://https://www.unimib.it/enrico-moretto

CNR - IMATI ( email )

via Bassini 15
Milano, 20133
Italy

University of Insubria - Department of Economics ( email )

Via Ravasi 2
Varese, 21100
Italy

Giulio Tagliavini

University of Parma - Dipartimento di Economia ( email )

Via Kennedy 6
Parma, Parma 43100
Italy

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