Valuation of Guaranteed Maximum Price Contracts in Korea Using the Collar Option Model

Table 2

Cost variation ratios of sample projects.

Cost variation ratio (%)	Project number (%)		Average contract amount ($ thousand)	Average final amount ($ thousand)
Total	331	(100.0)	33,348	37,726
−5–0	47	(14.2)	32,233	32,040
0–5	193	(58.3)	30,123	30,749
5–10	42	(12.7)	42,106	45,263
10–15	26	(7.9)	41,303	46,974
15–20	16	(4.8)	38,854	46,906
20–25	7	(2.1)	36,687	46,848