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dc.contributor.authorJones, Hamishen_NZ
dc.identifier.citationJones, H. (2002, October 23). The pricing of minimum revenue guarantees on toll roads (Thesis). Retrieved from
dc.description.abstractA recent and exciting innovation in the field of corporate finance has been the application of financial derivatives theory to investment analysis. This study utilizes this insight to develop a model for pricing minimum revenue guarantees on toll roads. In some countries minimum revenue guarantees are a common way for government to subsidize private toll road development. A minimum revenue guarantee gives the owner the right to swap the revenue generated from an asset over a preceding period for a fixed amount of cash should they choose to do so. Unfortunately, minimum revenue guarantees create contingent liabilities for the granting government that are rarely, if ever, accounted for on the government's balance sheet. These liabilities may represent a significant unmanaged risk for many countries. This study uses the arbitrage arguments developed for the pricing of financial options to build a model for quantifying the cost of the contingent risk to the government arising from minimum revenue guarantees on toll roads. This model may provide a framework for improved risk management strategies for countries that grant minimum revenue guarantees on toll roads.en_NZ
dc.subjectfinancial derivatives theoryen_NZ
dc.subjectinvestment analysisen_NZ
dc.subjectminimum revenue guaranteesen_NZ
dc.subjecttoll roadsen_NZ
dc.subjectcontingent liabilitiesen_NZ
dc.subjectminimum revenue guaranteesen_NZ
dc.subjectpricing of financial optionsen_NZ
dc.subjectrisk management strategiesen_NZ
dc.subject.lcshHF Commerceen_NZ
dc.subject.lcshHF5601 Accountingen_NZ
dc.subject.lcshHG Financeen_NZ
dc.subject.lcshHF5601 Accountingen_NZ
dc.titleThe pricing of minimum revenue guarantees on toll roadsen_NZ
otago.schoolFinanceen_NZ of Otagoen_NZ Thesesen_NZ
otago.openaccessAbstract Only
dc.identifier.eprints589en_NZ & Quantitative Analysisen_NZ
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