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Getting real with real options [PDF]
arXiv, 2006 We apply a utility-based method to obtain the value of a finite-time investment opportunity when the underlying real asset is not perfectly correlated to a traded financial asset. Using a discrete-time algorithm to calculate the indifference price for this type of real option, we present numerical examples for the corresponding investment thresholds ...
arxiv +4 more sources
Application of Option Games in Investment Analysis [PDF]
International Journal of Supply and Operations Management, 2018 This paper considers a popular problem in the investment, the best time and size of investment, using methods of real options in a cooperative game setting.
Abdollah Arasteh
doaj +1 more source
Fuzzy real options valuation for oil investments
Technological and Economic Development of Economy, 2009 Traditional valuation methods are less viable under uncertainty. Hence, other methods such as real options valuation models, which can minimize uncertainty, have become more important.
İrem Uçal, Cengiz Kahraman
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Real Options in Capital Budgeting. Pricing the Option to Delay and the Option to Abandon a Project [PDF]
Theoretical and Applied Economics, 2007 Traditional discounted cash-flows method for assessing projects assumes that investment decision is an irreversible one, which is not correct. Managers can and must reconsider their initial decision as the new information arises during the project life ...
Nicoleta Vintila
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Quantitative Finance and Economics, 2019 The real options approach has been supporting investment decision-making processes for years. However, on competitive markets, the real options games approach is the more suitable way.
Elżbieta Rychłowska-Musiał
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Call and Put Option Pricing with Discrete Linear Investment Strategy [PDF]
, 2021 We study the Option pricing with linear investment strategy based on discrete time trading of the underlying security, which unlike the existing continuous trading models provides a feasible real market implementation. Closed form formulas for Call and Put Option price are established for fixed interest rates and their extensions to stochastic Vasicek ...
arxiv +1 more source
Just-in-Time system in terms of real options
Competitio, 2020 The value creation process in a company and the competitive position are critically influenced by corporate resource allocation and proper valuation of investment alternatives. After the Second World War, capital budgeting and strategic planning emerged
Andrea Rozsa
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The Worst Case for Real Options [PDF]
Journal of Optimization Theory and Applications, 2010 The problem of the timing of an investment decision under partial information is analyzed in a framework where the firm is ambiguity averse. The analysis yields the description of a robust decision rule for an investment in a finite life project in presence of a stochastic instantaneous return.
Peter M. Kort +2 more
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Does Economic Policy Uncertainty Affect M&A Operations? Evidence from the Brazilian Market
BBR: Brazilian Business Review, 2023 The objective of this work was to investigate the effect of Economic Policy Uncertainty on Mergers and Acquisitions operations of listed companies in Brazil.
Alexandre Teixeira Norberto Batista +2 more
doaj +1 more source
Henley Manager Update, 2005 The notion of ‘real options’ applies option pricing theory to non-financial assets. The complexity of modelling investments as options has meant that, to date, options literature has had relatively little impact on management practices. This article examines recent attempts to find an optimum methodology for evaluating real options; with the plethora ...
openaire +1 more source