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An analysis of snow options for ski resort establishments

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  • Beyazıt, Mehmet Fuat
  • Koc, Erdogan

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.

Suggested Citation

  • Beyazıt, Mehmet Fuat & Koc, Erdogan, 2010. "An analysis of snow options for ski resort establishments," Tourism Management, Elsevier, vol. 31(5), pages 676-683.
    • Handle: RePEc:eee:touman:v:31:y:2010:i:5:p:676-683
    DOI: 10.1016/j.tourman.2009.07.012
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    References listed on IDEAS

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    Cited by:

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    2. Ziye Shang & Jian Ming Luo & Anthony Kong, 2022. "Topic Modelling for Ski Resorts: An Analysis of Experience Attributes and Seasonality," Sustainability, MDPI, vol. 14(6), pages 1-15, March.

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