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An option-pricing framework for valuation of football players

Tunaru, Radu; Clark, Ephraim and Viney, Howard (2005). An option-pricing framework for valuation of football players. Review of Financial Economics, 14(3-4) pp. 281–295.

DOI (Digital Object Identifier) Link: http://dx.doi.org/10.1016/j.rfe.2004.11.002
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Abstract

In this paper we develop a contingent claims framework for determining the financial value of professional football players. Contingent claims style modelling is used to develop two models. The pricing of football players is based on a performance index such as the Carling Opta Index. Unexpected events such as injuries are included into the models as Poisson jump processes. The value of a player varies from club to club, depending on club turnover and the total number of performance points generated by the entire team.

Item Type: Journal Article
ISSN: 1058-3300
Keywords: Real options; investment analysis; geometric Brownian motion; jump processes; Ito's lemma
Academic Unit/Department: Open University Business School
Item ID: 1900
Depositing User: Users 12 not found.
Date Deposited: 07 Jun 2006
Last Modified: 02 Dec 2010 19:46
URI: http://oro.open.ac.uk/id/eprint/1900
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