Last edited by Jubei
Wednesday, August 5, 2020 | History

1 edition of Real Options Analysis Course found in the catalog.

Real Options Analysis Course

Business Cases and Software Applications

by Johnathan Mun

  • 87 Want to read
  • 39 Currently reading

Published by John Wiley & Sons in Hoboken, NJ .
Written in English


About the Edition

Most investors and risk managers are familiar with financial options. But the real option structure is embedded in billions of dollars of stocks traded everyday, and in billions of dollars of strategic or investment decisions made by many companies. Real Options Analysis Course: Business Cases and Software Applications provides an advanced view of evaluating and valuing capital investment strategies by taking into consideration the strategic decision-making process.

Edition Notes

Description based on print version record.

Classifications
LC ClassificationsHG6042.M855 2003eb
The Physical Object
Format[electronic resource] :
Pagination1 online resource (321 p.)
Number of Pages321
ID Numbers
Open LibraryOL27084576M
ISBN 100471465348
ISBN 109780471465348
OCLC/WorldCa181841936

The book normally used for the class at UIUC is Bartle and Sherbert, Introduction to Real Analysis third edition [BS]. The structure of the beginning of the book somewhat follows the standard syllabus of UIUC Math and therefore has some similarities with [BS]. A major. Example of “Real Options” Analysis • Suppose the key source of uncertainty is the markup of price over carrier settlements. • Suppose that there is a 50% chance that the mark up is high (25% mark up) and a 50% chance that it is low (15% mark up).

Real Options Analysis. ROI builds real options analysis into all investment decisions to enhance value and mitigate risk. Creating opportunities and managing risks. Our Recent Work. Read More. From The Blog. Towards a Fair and Rigorous International . There is a final point that we should consider relating to the early exercise of American style real options. Once again, you might recall from our earlier sessions on options in course three of the specialization, that it makes no sense to exercise an American style call option early, unless the underlying asset were about to pay a dividend.

Mun demystifies real options analysis and delivers a powerful, pragmatic guide for decision-makers and practitioners alike. Finally, there is a book that equips professionals to easily recognize, value, and seize real options in the world around them. --Jim Schreckengast, Senior VP, RD Strategy, Gemplus International SA, France Completely revised and updated to meet the challenges of todays. Cost-Effectiveness Analysis provides an alternative technique whereby valuing in monetary terms is almost impossible. Kee and Cellini () [8] summarized this ratio as: As the output is a non-valued ratio, the major difficulty with CEA is that it leaves a subjective judgment to the policymaker.


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Real Options Analysis Course by Johnathan Mun Download PDF EPUB FB2

Praise for Real Options Analysis Course "Dr. Mun's latest book is a logical extension of the theory and application presented in Real Options Analysis.

More specifically, the Real Options Analysis Course presents numerous real options examples and provides the reader with step-by-step problem-solving by: “Dr. Mun’s latest book is a logical extension of the theory and application presented in Real Options Analysis.

More specifically, the Real Options Analysis Course presents numerous real options examples and provides the reader with step-by-step problem-solving techniques.

Real Options Analysis, Second Edition is an accessible guide to the use of real options in the decision-making process. With this book as your guide, real options expert Johnathan Mun will help you gain a firm understanding of real options analysis when valuing strategic investments and decisions, and show you how to apply it across numerous /5(18).

“Real” options are the physical equivalent of financial options. 44 They arise in the course of business and represent the chance to make a profitable investment in the future, after the firm knows more about whether it would be a good idea. But real options can no more be valued with a present discounted value formula than can financial.

Of course, the key difference between real options and derivative options contracts is that the latter trades on an exchange has a numerical value. Real options. Real options valuation, also often termed real options analysis, (ROV or ROA) applies option valuation techniques to capital budgeting decisions.

A real option itself, is the right—but not the obligation—to undertake certain business initiatives, such as deferring, abandoning, expanding, staging, or contracting a capital investment project.

For example, the opportunity to invest in the. He has authored numerous Wiley books, including the first edition of Real Options Analysis, Real Options Analysis Course, Applied Risk Analysis, and Valuing Employee Stock Options. Mun has also taught and consulted for over corporations in twenty countries worldwide on risk analysis and real options.

This text provides an excellent follow up to Dr. Mun’s first book, Real Options Analysis. The cases in the Real Options Analysis Course provide numerous examples of how the use of real options and the Real Options Toolkit Software can assist in the valuation of strategic and managerial flexibility in a variety of arenas, with many practical and useful examples.

options to invest, and the greater the incentive to keep these options open. Note that value of a firm is value of its capital in place plus the value of its growth options. Robert Pindyck (MIT) LECTURES ON REAL OPTIONS — PART I August, 2 / Real Options Analysis and Strategic Decision Making Edward H.

Bowman (deceased) formerly at The Wharton School, University of Pennsylvania Gary T. Moskowitz Edwin L. Cox School of Business, Southern Methodist University, P.O. BoxDallas, Texas This book explains the standard Real Options Analysis (ROA) literature in a straightforward, step by step manner without the use of complex mathematics.

A lot of ROA literature is described through partial differential equations, probability density functions and simulation techniques, all of which. Real Options Analysis provides a revolutionary approach to evaluating and valuing capital investment strategies by taking into consideration the real options inherent in the strategic decision-making process.

This book provides readers with a qualitative and quantitative description of real options, the methods used in solving real options, why 5/5(2). potential pitfalls in using the real options argument and how it can be best incorporated into a portfolio of risk assessment tools.

The Essence of Real Options To understand the basis of the real options argument and the reasons for its allure, it is easiest to go back to risk assessment tool that we unveiled in chapter 6 – decision trees.

“Real Options Analysisis the clearest book on real options that we have read to date. It does an excellent job of demystifying a difficult and complex subject.

It provides a solid basis for conceiving, assessing, and evaluating real option investments, which will make it useful to practitioners and students alike.” —Ian C. MacMillan, Ph.D. Real Options Analysis The challenge and the opportunity Ian Robinson Tim Kyng.

Overview Real Options - New Book Releases Source: March Dixit & Pindyck Trigeorgis Amram & Using Real Options Short Course May"Using Real Options to Value &.

It shows the utility of abstract concepts and teaches an understanding and construction of proofs. MIT students may choose to take one of three versions of Real Analysis; this version offers three additional units of credit for instruction and practice in written and oral presentation.

The three options for   An analysis based on real options would instead focus on the range of profits and losses that may be encountered over the course of the investment period as the price of oil changes over time. A comprehensive real options analysis begins with a review of the risks to which a project will be subjected, and then models for each of these risks or.

$\begingroup$ Ash's Probability & Measure Theory has complete solutions to many of the exercises. I discovered this about (the first edition of) Ash's book many years ago simply by browsing in a university library.

If you have access to such a library, I suggest you simply go to the locations where real analysis texts are shelved (in the U.S., this will be in the QA and QA vicinities. Types of Real Options. Real options in capital budgeting allow a company’s management to make future decisions that may change the value of capital budgeting decisions made today.

While there are several t ypes of real options, all of them always increase the present value of a project. That’s because they offer increased flexibility. Thus, when in doubt, know that a real option’s value.

John Hull, a professor of Derivatives and Risk Management, uses real-life examples to help you comprehend futures and options markets. The 9th edition of this book touches on the same points as Hull's previous work, "Options, Futures, and Other Derivatives," but in a more digestible way for general, less finance-savvy readers.

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.Real options are a complement to, not a substitute for, discounted cash flow analysis. To pick the best growth projects, managers need to use the two methods in tandem.Real options are not just about "getting a number", they also provide a useful framework for strategic decision making.

So what is a real option? It is the right - but not the obligation - to acquire the gross present value of expected cash flows by making an irreversible investment on or before the date the opportunity ceases to be available.