Method for valuing forwards, futures and options on real estate
AssigneeRadar Logic Incorporated
InventorAndrew T. Hecht
Life of this patent
Estimating the term…
Abstract
A system and method for matching buy and sell orders is provided. A daily cash index of real estate values for a local region is maintained and a trading instrument representative of an interest in real estate in the local region is created. In this regard, a cash settlement of the trading instrument is a function of the daily cash index on the date of said cash settlement. In addition, a plurality of buy orders relating to the instrument are generated; a plurality of sell orders relating to the instrument are generated; and the buy and sell orders are matched to determine a purchase and sale of the instrument.
Claims19
1-73. (canceled)
A method for providing a daily cash index for real estate transaction values, comprising:
- a. for each day, performing a survey of actual real estate transactions executed on said day in a local region;
- b. for each day, using a computer:
- generating a daily cash index of real estate transaction values in the local region based upon the survey by compiling the data obtained from the survey of actual real estate transactions into a series of data points;
- for each day, manipulating the series of data points by statistical tools to create a normal distribution of rate prices per unit area;
- and for each day, calculating the price per unit area for the local sector;
- the price per unit area for the local sector being usable as a cash mark to market settlement value;
- c. for each month, using a computer, aggregating the daily surveys to generate a monthly cash index;
- d. generating, using a computer, a volatility value based upon the monthly cash indices over at least one year as a measure of historical performance.
A method for providing a daily cash index for real estate transaction values, comprising:
- a. for each day, performing a survey of actual real estate transactions executed on said day in a local region;
- b. for each day, using a computer:
- generating a daily cash index of real estate transaction values in the local region based upon the survey by compiling the data obtained from the survey of actual real estate transactions into a series of data points;
- for each day, manipulating the series of data points by statistical tools to create a normal distribution of rate prices per unit area;
- and for each day, calculating the price per unit area for the local sector;
- the price per unit area for the local sector being usable as a cash mark to market settlement value.
A method for providing a daily cash index for real estate transaction values, comprising:
- a. based upon historical data, using a computer, generating monthly cash indices of real estate values in a local region for each month of at least 10 prior years;
- b. generating, using a computer, an initial volatility value based upon the monthly cash indices over said at least 10 prior years;
- c. for each day, performing a survey of actual real estate transactions executed on said day in the local region;
- d. for each day, using a computer:
- generating a daily cash index of real estate transaction values in the local region based upon the survey by compiling the data obtained from the survey of actual real estate transactions into a series of data points;
- for each day, manipulating the series of data points by statistical tools to create a normal distribution of rate prices per unit area;
- and for each day, calculating the price per unit area for the local sector;
- the price per unit area for the local sector being usable as a cash mark to market settlement value;
- e. for each month, using a computer, aggregating the daily surveys on a monthly basis to generate a monthly cash index for said each month;
- and
- f. updating, using a computer, the volatility value based upon each monthly cash index generated in step e.
Dependencies are inferred from the claim text.