Valuing coins as the sum of the underlying asset and a perpetual American put option

Title: Valuing coins as the sum of the underlying asset and a perpetual American put option
Creator: Easton, Stephen
Relation: Global Finance Journal Vol. 17, Issue 3, p. 397- 402
Publisher Link: http://dx.doi.org/10.1016/j.gfj.2006.08.001
Publisher: Elsevier
Resource Type: journal article
Date: 2007
Description: Coins may be valued as the sum of the value of the component metals, plus a perpetual American put option with an exercise price equal to the face value. For widely circulated coins, the value of the component metals is sufficiently low compared to the face value that immediate exercise is optimal. For bullion coins the put option has only a trivial value. However, in some cases the value of the component metals is sufficiently close to the face value that the put option has a non-trivial time value. An example is provided of the 1966 Australian 50 cent coin.
Subject: perpetual American put option; coins
Identifier: http://hdl.handle.net/1959.13/927778
Identifier: uon:10244
Identifier: ISSN:1044-0283
Language: eng
Reviewed

		Thumbnail	File	Description	Size	Format