You are a hospital administrator trying to raise capital to refurbish the hospital. Your local bank is reluctant to lend to you because you already have a large mortgage on the property on which the hospital complex lies. But your bankers tell you that they can lend you more if you reduce your debt by selling your parking lot to some private investors who'll lease it back to you for the next 50 years. And you'll have to renegotiate the price of the lease every 5 years. What concerns might you have about this sale- and- lease- back contract?

Suppose your parking lot has two different consumers who use it at two different times. Daily commuters use it during the daytime, and sports fans use it at different times to park at sporting events. Daily commuter demand is variable, yet stable and known. Demand for sporting events is uncertain, and depends on the quality of the match, as well as on unpredictable events, like the weather. How would you price these two events differently?