Advances in Financial Leasing Mechanism Designs

Financial leasing contracts usually include specific clauses for early termination of the agreement in event that lessee defaults. The lessor might, therefore, not immediately ask financial lease order to take advantage increment fees accrued due default interest. analysis presented this work aims find conditions determining optimal time rescind contract, when arrears’ interest rate is higher than outstanding fees’ established contract and return alternative investments deterministic. In paper, we study advanced a maximize wealth against natural expiry contract. We prove can be found through intersection instantaneous force lessor’s credit at certain date opportunity cost capital, or initial maturity date. To end, provide detailed list cases which it appropriate terminate not. problem formulated case where follows deterministic semi-deterministic dynamics.