Maximum residual exposure on bareboat charter sensitized to reflect residual value risk of asset:
− 80% of scrap value if vessel is older than 15 years on completion of charter
− 80% of purchase price, if vessel is 5 years old (or younger) on completion of charter
● Purchase option is priced at bareboat residual exposure
● Note: the economics and viability of the model are very sensitive to the structure and pricing assumptions of the Hongkou
bareboat