Download this Paper Open PDF in Browser

Pricing and Net Profit of Operating Lease

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

19 Pages Posted: 5 May 2013  

Enrico Moretto

University of Insubria - Department of Economics; CNR - IMATI

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)

University of Insubria - Department of Economics ( email )

Via Ravasi 2
Varese, 21100
Italy

CNR - IMATI ( email )

via Bassini 15
Milano, 20133
Italy

Giulio Tagliavini

University of Parma - Dipartimento di Economia ( email )

Via Kennedy 6
Parma, Parma 43100
Italy

Paper statistics

Downloads
47
Abstract Views
216