Real Option Analysis - a new approach for making decisions

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F61989100%3A27510%2F02%3A00001977" target="_blank" >RIV/61989100:27510/02:00001977 - isvavai.cz</a>
Result on the web
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DOI - Digital Object Identifier
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Result language
angličtina
Original language name
Real Option Analysis - a new approach for making decisions
Original language description
This article deals with the traditional subject of resource allocation or project valuation under uncertainty, particularly with the valuation of managerial operating flexibility as corporate real options. Similar to options on financial securities, realoptions involve decisions or rights, with no obligation, to acquire or exchange an asset for a specified alternative price.The ability to value real options (e.g. to deffer, expand, contract, abandon, switch use or otherwise alter a capital investment)has brought a revolution to modern corporate resource allocation. The article provides new insight in valuing of project under uncertainty. First, real option and the basic types of real options are explained and compared with financial option. Than, thecomparison of traditional passive approach for valuing projects and Real Option Analysis is made. At the end simple example is stated that compares the results of both approaches
Czech name
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Czech description
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Type
J<sub>x</sub> - Unclassified - Peer-reviewed scientific article (Jimp, Jsc and Jost)
CEP classification
AH - Economics
OECD FORD branch
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Publication year
2002
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

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