Contingent Claim Approach for Pricing of Sovereign Sukuk for R&D Financing in Indonesia

Lindawati Wardani, Viverita Viverita, Zaäfri Ananto Husodo and Sinto Sunaryo

Emerging Markets Finance and Trade, 2020, vol. 56, issue 2, 338-350

Abstract: This paper proposes a model for financing research and development activities with a focus on the pricing of sukuk as the source of financing. Pricing scenarios are conducted using the real options approach consisting of continuity, abandonment, and substitution scenarios. The results establish possible future values of products depending on the risk value obtained by converting the project’s technology readiness level as well as the scenario chosen. The results show consistency with the risk-return tradeoff, and the complete continuity scenario provides the closest results to the yields of existing project-based sukuk.

Date: 2020
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/1540496X.2019.1658067 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mes:emfitr:v:56:y:2020:i:2:p:338-350

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/MREE20

DOI: 10.1080/1540496X.2019.1658067

Access Statistics for this article

More articles in Emerging Markets Finance and Trade from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().