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.
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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