Determining a Price Premium for a Project
First Claim
1. A method for determining a price premium for a project, comprising:
- accessing project information comprising values for one or more parameters of a project;
determining from the project information a project duration for the project;
determining from the project information a time value of money for the project;
determining from the project information a variability for the project;
determining from the project information an expected project price; and
generating, according to the project duration, the time value of money, the variability value, and the expected project price, a price premium for the project using an option-pricing mathematical model for financial instruments.
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Accused Products
Abstract
In certain embodiments, a method for determining a price premium for a project includes accessing project information that includes values for one or more parameters of a project. The method further includes determining from the project information a project duration for the project, a time value of money for the project, a variability for the project, and an expected project price. A price premium for the project is generated according to the project duration, the time value of money, the variability value, and the expected project price, using an option-pricing mathematical model for financial instruments.
73 Citations
29 Claims
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1. A method for determining a price premium for a project, comprising:
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accessing project information comprising values for one or more parameters of a project; determining from the project information a project duration for the project; determining from the project information a time value of money for the project; determining from the project information a variability for the project; determining from the project information an expected project price; and generating, according to the project duration, the time value of money, the variability value, and the expected project price, a price premium for the project using an option-pricing mathematical model for financial instruments. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9)
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10. Software for determining a price premium for a project, the software being embodied in a computer-readable medium and when executed operable to:
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access project information comprising values for one or more parameters of a project; determine from the project information a project duration for the project; determine from the project information a time value of money for the project; determine from the project information a variability for the project; determine from the project information an expected project price; and generate, according to the project duration, the time value of money, the variability value, and the expected project price, a price premium for the project using an option-pricing mathematical model for financial instruments. - View Dependent Claims (11, 12, 13, 14, 15, 16, 17, 18)
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19. A system for determining a price premium for a project, comprising:
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a memory module operable to store project information comprising values for one or more parameters of a project; and one or more processing units collectively operable to; determine from the project information a project duration for the project; determine from the project information a time value of money for the project; determine from the project information a variability for the project; determine from the project information an expected project price; and generate, according to the project duration, the time value of money, the variability value, and the expected project price, a price premium for the project using an option-pricing mathematical model for financial instruments. - View Dependent Claims (20, 21, 22, 23, 24, 25, 26, 27)
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28. A method for determining a price premium for a project, comprising:
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accessing project information comprising values for one or more parameters of a project; determining from the project information a project duration for the project; building, based on the project information, a tree of actual project price scenarios for the project, each level of the tree associated with a time period for the project; setting a return of the tree to a predetermined rate; generating, according to the project duration and the tree of actual project price scenarios, a price premium for the project using the binomial method for financial instrument option pricing. - View Dependent Claims (29)
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Specification