What is it about?
The present study evaluates the option value of the reverse mortgage in Hong Kong through an empirical analysis using the Black–Scholes option-pricing model.
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Why is it important?
The present study shows specific monetary values through option matching to the consumer situation, contributing to the increased understanding of reverse mortgages from the consumer’s point of view.
Perspectives
This study is significant in that it is empirical research that converts the benefits of using a reverse mortgage into a specific monetary value.But the paper ignores the influencing factors of the demand motivation of the elderly. However the needs of the elderly is a key factor in the success of reverse mortgage.
Wei Han
Southwest Jiaotong University
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This page is a summary of: Evaluation of the Reverse Mortgage Option in Hong Kong, Asian Economic Journal, June 2017, Wiley,
DOI: 10.1111/asej.12117.
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