Application of option pricing approach in forest assets evaluation

Key words: 
• call option /
• Black and Scholes option pricing approach /
• forest assets evaluation

Abstract: The option theory and the option pricing approach are applied to evaluating the forest assets .It is found that the sensitivity of the evaluation value to the price fluctuation parameter is about 0.5 .With the increases in value , forest age , forest invest efficiency (input-output ratio), the evaluation value will increase , vice versa . Compared to net present value method of harvesting , the evaluation for 2 426.29 hm2 mason pine (from 15 to 31 years aged region)by the option pricing approach is in consistence with the result by net present value method of harvesting as the rotation age is equal to the quantitative maturity .But for forest at other ages , the evaluation is defferent by both methods .[ Ch , 2 tab .7 ref .]