%A Broz, Diego Ricardo
%A Woitschach, Guillermo B. M.
%A Milanesi, Gastón
%D 2016
%T A REAL OPTIONS APPROACH TO THE DETERMINATION OF OPTIMAL HARVESTING AGE FOR TWO KINDS OF FOREST MANAGEMENT
%K Binomial grid, shift, exotic option.
%X It was studied Real Options approach as a financial-economic tool for strategic decision-making in the determination of optimal harvesting age in two kinds of forestry exploitation, a high-value one and a pulp-producing unit. It is assumed that the projection of selling prices of the byproducts follows a Brownian geometric stochastic process, while production is determined by means of a simulation of forestry turnover. The decision of when to harvest arises from the comparison, at each period, of the cash-flow at each node ( ) of a binomial lattice and its expected value in the next period ( ). The Real Values approach indicates that the optimal ages are at 18 years for high-value units and 17 years for pulp producing ones.
%U http://cerne.ufla.br/site/index.php/CERNE/article/view/964
%J CERNE
%0 Journal Article
%P 89-96%V 20
%N 1
%@ 2317-6342
%8 2016-04-06