An analysis of snow options for ski resort establishments

Mehmet Fuat Beyazıt and Erdogan Koc

Tourism Management, 2010, vol. 31, issue 5, 676-683

Abstract: This study proposes a pricing method for put options on snow level for tourism establishments operating in Palandoken ski resort in the east of Turkey. In the calculation of put prices historical densities and Edgeworth adjusted densities methods together with Alaton, Djehiche, and Stillberger (2002) method have been applied. The findings show that there may be significant differences in the prices calculated by the three different methods, hence enabling both parties, i.e. buyers and sellers, with bases in the negotiation process. As the study is primarily aimed at providing a framework for pricing put options on snow levels in general, it is expected that it would be of use not only for this particular ski resort but also for various ski resorts in the world.

Keywords: Snow options; Edgeworth adjusted density; Ski resort; Turkish tourism (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:touman:v:31:y:2010:i:5:p:676-683

DOI: 10.1016/j.tourman.2009.07.012

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