Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments January 2, 2004 erstellt
Description:
We consider the question whether or not to buy a house from the point of view of real options. In particular, we consider the optimal (stopping) time to exercise, i.e. to buy the house. We define various utility functions, and we write the exercise decision as an optimal stopping problem. Having introduced the model we present some numerical analysis and conclusions