In order to deepen the real estate market reform, China relevant departments claim in recent years that real estate enterprises must obtain commercially-used land right until pay the land-transferring fees through market operation solutions as tender offering, as well as develop the project within two years after that. However, when utilizing the real option theory to study investment decision of real estate enterprises, the perpetual American option pricing model and the European B-S option pricing model are often adopted, which doesn’t obvio...
