Real options evaluating corporate investment opportunities in a dynamic world

Cover of: Real options |

Published by Financial Times Prentice Hall in London, New York .

Written in English

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  • Intangible property -- Valuation.,
  • Investment analysis.,
  • Options (Finance) -- Valuation.

Edition Notes

Includes bibliographical references (p. 295-299) and index.

Book details

StatementSydney Howell ... [et al.]
ContributionsHowell, Syd.
LC ClassificationsHF5681.I55 R43 2001
The Physical Object
Paginationxii, 308 p. :
Number of Pages308
ID Numbers
Open LibraryOL3344715M
ISBN 100273653024
LC Control Number2004351005

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In fact, you are holding one in your Real options book. Take it from me that reading this book will yield you huge  › Books › Business & Money › Job Hunting & Careers. Comprehensive in scope, Real Options reviews current techniques of capital budgeting and details an approach (based on the pricing of options) that provides a means of quantifying the elusive elements of managerial flexibility in the face of unexpected changes in the market.

In the s and the s, developments in the valuation of capital-investment opportunities based on options pricing Publisher Summary. This chapter introduces the concept of real research and development (R&D). There are some excellent classics on real R&D options, starting some 20 years ago, which are not originally considered real options, but where the R&D discovery, volume of sales, as well as the unit prices of the development are considered ://   “Real Options Analysisis the clearest book on real options that we have read to date.

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MacMillan, Ph.D., Real Options Analysis. Real options analysis allows the firm to determine how much this safety downside insurance or abandonment option is worth (i.e., what is the fair market value of the contractual fee to obtain the option), the optimal trigger price (i.e., at what price will it be optimal to sell the land), and the optimal timing (i.e., what is the optimal amount of time to hold on to the /economics-econometrics-and-finance/real-options-analysis.

In this book Lenos Trigeorgis, who has helped shape the field of real options, brings together a wealth of previously scattered knowledge and research on the new flexibility in corporate resource allocation and in the evaluation of investment alternatives brought about by the shift from static cash-flow approaches to the more dynamic paradigm  › Books › Business & Money › Economics.

Robert Pindyck (MIT) LECTURES ON REAL OPTIONS — PART I August, 17 / Analogy to Financial Options (continued) Hence selling widgets short will require a payment of.1P 0 = $10 per widget per year.

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CHAPTER 8 REAL OPTIONS The approaches that we have described in the last three chapters for assessing the effects of risk, for the most part, are focused on the negative effects of risk.

Put another way, they are all focused on the downside of risk and they miss the Real Option: A real option is a choice made available with business investment opportunities, referred to as “real” because it typically references a tangible asset instead of financial.

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