Patent ID: 8332331
Filing Date: 2012-12-11
Classification: G06Q

Abstract:
1. A computer-implemented method for determining a price premium for a project, comprising: accessing using a processing module of a computer system project information comprising values for one or more parameters of a project, the project information being stored in a memory module of the computer system; determining from the project information a project duration for the project; determining from the project information a time value of money for the project; determining from the project information a variability value for the project; determining from the project information an expected project price: and generating using the processing module of the computer system, according to the project duration, the time value of money, the variability value, and the expected project price, a price premium for the project using an option-pricing mathematical model for financial instruments, wherein the option-pricing mathematical model comprises the following formulas: where variables C and d are defined in terms of a variable S that represents an exercise price, a variable L that represents a current price, a variable r that represents an interest rate, a variable t that represents a time to maturity, a variable σ that represents a variability in terms of a standard deviation per period, a variable N that represents a cumulative normal distribution function, and a variable e that represents a mathematical constant.