Methods For Evaluating The Cost Of Options In A Leasing Transaction

The article explores the possibilities of using methods for assessing the value of options in a leasing transaction. Particular attention is paid to determining the value of the option to the right to acquire the leased asset at the end of the lease agreement. In order to assess the value of an option, factors were identified that affect the value of the option. The value of the option is affected by the current value of the leased asset, the strike price of the option, the time until the option expires, the volatility of the leased asset price, the short-term risk-free interest rate, expected income and expenses from the use of the leased asset during the term of the lease agreement. To assess the value of the option, a binomial model, a model based on creating the option equivalent, a risk-neutral method, put and call option parity equations, and the Black-Scholes model were used. The calculations allow us to conclude that the application of methods to assess the value of the option is reliable. The paper reveals the advantages and disadvantages of using various methods for assessing the value of an option in a leasing transaction. The application of options valuation methods allows the lessee to more reasonably approach the solution of the problem regarding the purchase of the leased asset under the purchase and sale agreement at the end of the lease agreement.