REAL OPTIONS VALUATION INC FULL

Whenever possible, real options valuations are aligned with financial market valuations. Uncertainty and the agent's ability to respond to it (flexibility) are the source of value of an option. Options are contingent decisions that provide the opportunity to make a decision after uncertainty unfolds. The real options approach is an extension of financial options theory to options on real/non-financial assets. Two applications of the real options approach are discussed in more detail: the valuation of natural resource investments and the valuation of research and development investments. Recent developments in the valuation of complex American options has allowed progress in the solution of many interesting real option problems. After a general introduction to the subject, numerical procedures to value real options are discussed. Email: paper provides an overview of the real options approach to valuation mainly from the point of view of the author who has worked in this area for over 30 years. ** California Chair in Real Estate and Land Economics Professor of Finance, Anderson School of Management, University of California, Los Angeles. Hay Jin Kim provided valuable assistance. * This lecture was delivered at the 2013 Finance UC Conference in Santiago, Chile.

REAL OPTIONS VALUATION INC FULL

'Written from the viewpoint of an educator and practitioner, Mun's book offers a readable reference full of insight and decision-making tools to satisfy both the novice and the experienced veteran.THE REAL OPTIONS APPROACH TO VALUATION: CHALLENGES AND OPPORTUNITIES * Naval Postgraduate School, Monterey, California, and author of Measuring and Managing Knowledge Tom Housel, PhD, Professor of Information Sciences U.S. This book is an instant classic and must be read by anyone who needs to perform real options, decisions, and risk analysis.' Mun's new book provides the best and most comprehensive pragmatic guide to valuing strategic decisions and options-both in the corporate setting as well as in evaluating strategic military decisions. MacMillan, PhD, The Fred Sullivan Professor of Entrepreneurship Department Chair, The Wharton School, University of Pennsylvania

'It provides a solid basis for conceiving, assessing, and evaluating real option investments, which will make it useful to practitioners and students alike.' Kenneth English, Director of R&D, The Timken Company ' ability to clearly explain the relationships of popular competing analysis methods will make this a must-have reference book for today's decision-makers.' Jim Schreckengast, Senior Vice President, R&D Strategy, Gemplus International SA, France Finally, there is a book that equips professionals to easily recognize, value, and seize real options in the world around them.' 'Mun demystifies real options analysis and delivers a powerful, pragmatic guide for decision-makers and practitioners alike. Finocchiaro, Technical Director, 3M Company Mun offers a pragmatic and useful approach to real options analysis for valuing R&D projects with inherent high uncertainty for maximum return.' it isn't often you can truthfully say a book breaks new ground, but has certainly done that.' Mun's new book is a refreshing, cutting-edge look at a powerful new decision-making process. Praise for Real Options Analysis, First and Second Edition

Real Options Analysis: Tools and Techniques for Valuing Strategic Investments and Decisions, 2nd Edition

Real options valuation inc