Notice of RetractionValuation on european call options in time charter for ships

Notice of Retraction

After careful and considered review of the content of this paper by a duly constituted expert committee, this paper has been found to be in violation of IEEE´s Publication Principles.

We hereby retract the content of this paper. Reasonable effort should be made to remove all past references to this paper.

The presenting author of this paper has the option to appeal this decision by contacting TPII@ieee.org.

High risks in shipping industry have resulted in a new application of options in shipping area and the behavior of call options emdedded in time charter for ships - i.e. the time charter that the shipowner and charterer have agreed says the charterer owns the right to buy the ship at the specified time and at the specified price - is such an application. According to the distinguishing features of time charter for ships, we have amended the “Black-and-Scholes” model and worked out the suitable valuation method for the research in this paper. Then we work out the results of valuation on European call options in time charter through numerical analysis using the amended model. This research can provide some theoretical basis for the risk averse in shipping industry.