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| | Using real options in strategic decision making |
 | | Therefore a real option is a free loan, and its value increases with the interest rate and the length of time before you invest. | | | A useful taxonomy classifies real options by whether they are proprietary or shared, whether they are simple or compounded (options on options) and whether the option-decision expires or can be deferred. | | | Using real options values the ability to invest now and make follow-up investments later if the original project is a success (a growth option). |
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http://mba.tuck.dartmouth.edu/paradigm/spring2000/articles/walters-decision_making.html
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| | CFO Europe |
| | Real options analysis is based on the observation, first made more than 20 years ago, that a company evaluating an existing asset or potential investment is in much the same position as the holder of a financial option, such as those written on stocks or commodity prices. | | | Real options practitioners have to overcome two major obstacles: first, they have to find a number to put on the real option value; and second, they have to persuade their organisations to change the way they think about valuation and investment. |
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http://www.cfoeurope.com/199908e.html
(6111 words)
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| | World of Real Options - Creating Value in an uncertain environment |
| | A real option 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. | | | Although this sounds similar to NPV, real options only have value when an investment involves an irreversible cost in an uncertain environment. | | | Concerning the valuation of Real Options we can use the same techniques as for standard options. |
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http://www.world-of-realoptions.com
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| | Optimize Magazine > Financial Management > Real Options, Real Opportunities > January 2002 |
| | The option to restart can be seen as a call option to capture the profits of the project, with the strike price being the variable cost. | | | Three things influence the price of stock options: the spread between the current price and the exercise price, the length of time for which the option is good, and the volatility of the stock in question. | | | If the option isn't exercised, the only cost is the price of the option, but the upside potential is large. |
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http://www.colorado.edu/engineering/alleman/print_files/pr_financial.html
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| | Real Options Conference 2002 Abstracts |
| | In this paper, we examine the real options approach to capital budgeting in the presence of managerial adverse incentives. | | | Real options reasoning is a logical for funding projects that maximizes learning and access to upside opportunities while containing costs and downside risk. | | | As a consequence, the aim of this research paper is to apply and test a variation of the real option method on private equity investments. |
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http://www.realoptions.org/abstracts/abstracts02.html
(7850 words)
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| | Campbell R. Harvey's Identifying Real Options |
| | The option valuation framework is particularly useful to the corporate strategist because it provides an integrative analysis of both operating and financial options associated with the combined investment and financing decisions. | | | The topic of real options applies the option valuation techniques to capital budgeting exercises in which a project is coupled with a put or call option. | | | Shutdown options are also valuable in farming (where they may be exercised if the cost of fertilizing, watering and harvesting exceeds the sale price of the product) and real-estate development (where they may be exercised if the cost of construction exceeds rent revenues). |
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http://faculty.fuqua.duke.edu/~charvey/Teaching/BA456_2002/Identifying_real_options.htm
(3662 words)
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| | Fool.com: Putting "Real Options" to Work (Fool's Den) January 30, 2001 |
| | The second choice is to consider real options, but only invest in companies that you consider to be selling for what the core business is worth. | | | Mauboussin uses real options in part to explain the gap between how the stock market prices some businesses and the "intrinsic value" for those businesses as calculated by traditional financial analysis, specifically discounted cash flows. | | | In creating the concept of real options, Mauboussin is essentially acknowledging that companies are valued based on a combination of known business value plus a value that represents the opportunities for future value creation. |
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http://www.fool.com/research/2001/foolsden010130.htm
(1170 words)
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| | Real Options |
| | Real option valuation uses contingent claims analysis to value irreversible investments with uncertain payoffs. | | | This work investigates the interaction between the investment decision and the financing decision within a strategic real options framework. | | | The models allow us to examine, for instance, the impact of debt financing on the investment decision and on a firm's decision to file for bankruptcy. |
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http://www-cfr.jims.cam.ac.uk/research/real.html
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| | Capital Strategy Private Circulation Letter - Article: Real Options |
| | Financial options are options to buy and sell shares or some financial instrument at some time in the future. | | | Shared options may have negative value because your competitor may benefit from the delay/change even more than you do. | | | Real options apply to actual choices in day-to-day decision-making. |
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http://www.runge.com/capital/capnews/news003.htm
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| | Real Options : : Managing Strategic Investment in an Uncertain World |
| | In those heady days, real options was seen as a way of possibly explaining high stock values and also as a way of identifying and organizing company strategy around valuable growth opportunities. | | | We wanted to bridge academic knowledge and managerial practice, and to bring the real options approach to managers - without a heavy burden of math. | | | Real Options : : Managing Strategic Investment in an Uncertain World |
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http://www.real-options.com
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| | Exploiting Uncertainty |
| | A revolutionary concept in corporate finance called ''real options theory.'' In a nutshell, it says that when the future is highly uncertain, it pays to have a broad range of options open. | | | Consider an option to buy a share of IBM at $260 a share by June 30 when the current price is, say, $230. | | | Now, the asset that you get with the call option is something that's not traded--for example, a factory that hasn't even been constructed yet. |
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http://www.businessweek.com/1999/99_23/b3632141.htm
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| | Using Real Options Software to Value Complex Options by Jonathan Mun |
| | In financial options analysis, there are multiple methodologies and approaches used to calculate an option's value. | | | Compare this value to executing immediately, where the 20% growth would be obtained at inception, driving the value of the asset to $120 million (1.2 times $100 million), less the $15 million implementation cost, yielding a net present value of $105 million for the project. | | | Suppose the sum of the present value of the future cash flows is $100 million for the oral version, using a standard discounted cash flow model forecast out 5 years with a lump sum terminal valuation at the end of 5 years. |
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http://www.fenews.com/fen27/RealOptions.html
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| | Real Options Panel |
| | Despite the growth in the use of real options, serious criticisms have been raised, prompting this interesting debate about the efficacy of using real options to evaluate uncertain IT investments. | | | This approach considers the level of risk associated with an investment and recognizes the ability of a corporation to defer this investment toward a later date or make a partial investment. | | | Real Options Analysis is Entirely Appropriate for Evaluating Uncertain IT Investments |
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http://aisel.isworld.org/Proceedings/ICIS/2001/panels/realoptions.asp
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| | Real estate, alaska real estate, san antonio texas real estate |
| | Real Estate is your home on the Internet to find listings, information and calculators to help you buy, build, sell, finance, move, improve your... | | | Prudential Real Estate is a brokerage network of leading brokers and agents which provide quality services for residential home sales, home purchases,... | | | Rental real estate can be do-it-yourself job As more people invest in rental real estate they're discovering how much time and effort is involved in... |
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http://lookfinance.com/real-estate.html
(1542 words)
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| | Real Options Selected Links |
| | Download real options material from the course on corporate finance at WHU, The Koblenz School of Corporate Management. | | | Real options applications in Software Investment Analysis, with many resources. | | | Myers launched the field of real options in corporate finance in 1977. |
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http://www.puc-rio.br/marco.ind/ro-links.html
(4681 words)
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| | Our People |
| | Based on option valuation techniques proven in the financial markets, Real Options Valuation (ROV) is revolutionizing corporate strategy and bridging the gap between finance and strategic planning. | | | At the Real Options Group we are committed to help managers embrace and capitalize on uncertainty by understanding how a dynamic and contingent approach to future investment decisions can enhance shareholder value in an uncertain world. | | | Faced with uncertain decisions, managers intuitively know they have the option to defer, stage, abandon or expand a project, or even switch funds to a more profitable opportunity, yet the traditional framework of capital budgeting fails to take this managerial flexibility into account. |
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http://www.rogroup.com
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| | The Bottom Line: The 'real' options problem - Jul. 17, 2002 |
| | Expensing stock options, as Coca-Cola and a small group of other companies now say they will do, will lower reported earnings. | | | In Microsoft's case, its outstanding options represent 17 percent of the total shares outstanding. | | | Microsoft's market cap is $281 billion and there are roughly 5.4 billion shares outstanding, for a price per share on Wednesday of $52. |
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http://money.cnn.com/2002/07/17/commentary/bottomline/lashinsky
(574 words)
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| | Real estate investment options expanding - 2005-01-10 |
| | Milwaukee real estate investors anxious to diversify their portfolios are being recruited by national firms to take part in tenancy-in-common exchange transactions that promise stable returns, capital gains tax benefits and none of the headaches of active property management. | | | The tenancy-in-common real estate market is expected to more than double in 2005. | | | "Tenancy-in-common real estate deals are driven by the desire of taxpayers to take advantage of tax-free exchanges," said Carl Anderson, a certified public accountant and partner at Virchow Krause and Co.'s Milwaukee office. |
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http://www.bizjournals.com/milwaukee/stories/2005/01/10/focus4.html
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| | TIME.com: Interest Rates and Your Real Estate Options -- Page 1 |
| | But, considering the rising tide of interest rates, now seems a perfect time to assess your real estate holdings and home loan with an accountant or mortgage broker, just to make sure you're on the right track. | | | As with stocks, bonds and other investments, it's often difficult to make blanket statements about the entire real estate market, especially since home prices vary wildly in different cities, states and regions. | | | Today, a 30-year fixed rate mortgage with no upfront points averages about 6 1/8%, according to Bestinfo Inc. — rising 1/8 of a percentage point on Monday — while adjustable rate mortgages are slightly lower. |
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http://www.time.com/time/business/article/0,8599,1091902,00.html
(923 words)
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| | SSRN-Real Options Valuation: A Monte Carlo Approach by Andrea Gamba |
| | We propose a way of decomposing a complex capital budgeting problem with many options into a set of simple options, suitably accounting for interaction and interdependence among them. | | | We also provide a number of applications of our approach to well-known real options models and real life capital budgeting problems. | | | Gamba, Andrea NMI1, "Real Options Valuation: A Monte Carlo Approach" (December 2003). |
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http://papers.ssrn.com/abstract=302613
(267 words)
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| | Real Options - Computerworld |
| | Real Options simply substitutes nonfinancial, or real, assets for financial ones. | | | And a broad range of experts, including academics and analysts, say Real Options may also be the best way to assign a value to IT-related risk. | | | Only 8% of companies using the methodology said they were "extremely satisfied" with it, but Real Options' overall satisfaction score ranked fourth out of 25 methodologies studied. |
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http://www.computerworld.com/managementtopics/roi/story/0,10801,78542,00.html
(991 words)
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| | Blackwell Encyclopedia of Management - Contents |
| | New contributions reflect the emergence of behavioral finance (loss aversion, the house money effect, and momentum, for example), advances in asset pricing and econometric methods in finance such as the role of Threshold Autoregressive and Markov Switching models. | | | This new volume in the Blackwell Encyclopedia of Management 12-volume set charts the key concepts and frameworks in the growing field of Entrepreneurship, covering: 'creative destruction'; competitive dynamics; real options; social capital; corporate entrepreneuship; risk management; franchising; succession planning; location effects; spinoffs; and product innovation. | | | Many of the entries, particularly those dealing with different countries, have been updated to reflect the current business climate of those countries. |
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http://www.managementencyclopedia.com/contents.asp
(1046 words)
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| | InvestmentScience.com |
| | Many RandD managers have profited from realizing there is value in planning for uncertainty and that delaying some decisions until new information is available often is a value maximizing measure. | | | The purpose of this site is to promote and discuss modern investment analysis, ideas and techniques as applied to the pricing and management of real assets, or what has come to be known as Real Options. | | | For instance, some commodity prices (or their logarithms) are believed to fluctuate around some value associated with marginal production costs. |
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http://www.investmentscience.com
(572 words)
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| | Real Options Software |
| | Finally, we work with management to effectively implement a Real Options approach to enterprise management. | | | As practitioners, we empower you to undertake independent investment analysis, rather than relying on the assistance of expensive consultants. | | | Real Options Software is a leading provider of consulting, software and training in the use of Real Options. |
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http://www.realoptions-software.com
(153 words)
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| | s&p emini |
| | Stock, Futures, and Options Trading is high risk and you can lose a great deal of money, maybe all, in the process. | | | On average, expect up to 1 tick better or worse fill price than the system's reported fill. | | | Real time tests have shown differences in fill prices among members to be +/- 1 tick. |
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http://www.absolutedaytrader.com
(468 words)
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| | Professor Alexander Triantis |
| | Triantis has consulted and provided executive training in the areas of risk management, derivatives pricing, capital budgeting, project finance, and real option valuation to multinational corporations and organizations such as Airbus, Marriott International, Northrop Grumman, and the World Bank. | | | His articles have been published in Journal of Finance, Journal of Financial and Quantitative Analysis, Journal of International Economics, Journal of Law and Economics, Review of Financial Studies, and other leading academic and practitioner journals. |
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http://www.rhsmith.umd.edu/finance/atriantis/RealOptionsResearch.html
(91 words)
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| | AVVAL - Technology Talk Show - About the Show |
| | Scott was directly responsible for the development and deployment of a leading edge customer relationship management, Enterprise Resource Planning (ERP), supply chain and eCommerce initiative which continues to differentiate Equity Office as a premiere company in the United States. | | | Scott also worked as a consultant for Platinum Software Company and Andersen Consulting on a range of financial services, real estate, and business initiatives. | | | He is currently researching strategic alignment of technology projects and investments by understanding technology financial decision-making, ROI analysis, real options, and applications of portfolio theory. |
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http://talkshow.avval.com/recentguests.html
(9430 words)
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| | Amazon.com: Investment under Uncertainty: Explore similar items |
| | Avinash Dixit and Robert Pindyck have successfully applied to capital budgeting the ideas and techniques of option pricing that have so enriched our understanding of financial markets. | | | You may also be interested in these items... | | | This item ships for FREE with Super Saver Shipping. |
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http://www.amazon.com/exec/obidos/ASIN/0691034109/amerirealestatso
(86 words)
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| | Home New Phoenix - Phoenix Real Estate |
| | This information is provided for consumer's personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. | | | The Hampshire Partners Fund VI Acquires 377,587 Square Foot 7-Building Portfolio in Piscataway, New Jersey The Hampshire Companies, a full service, private real estate investment fund manager with equity in assets valued at over $1 billion, today announced the acquisition of seven buildings located near I-287 in Piscataway, New Jersey. | | | CEO sued over $241,000 bill at topless club NEW YORK - American Express is suing the CEO of a communications company for payment of $241,000 worth of disputed credit card charges at a Manhattan topless club. |
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http://www.phoenixrealestatedestination.com
(1513 words)
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| | Real Options Approach to Petroleum Investment |
| | Sometimes a growth option is exercised through new updates! | | | This Site Is Dedicated to Real Options Approach to Investments in General | | | Click here to know the main new additions in this update. |
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http://www.puc-rio.br/marco.ind/main.html
(121 words)
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| | Real Options for Women |
| | Real Options is a source of information to women making decisions about unplanned pregnancies, a gateway to medical care for women choosing to carry their pregnancies to term and a provider of screening for non-pregnant women at risk of sexually transmitted diseases. | | | All communication is kept confidential to the extent allowed by law. | | | Or visit our office at 700 E Park Blvd Suite 206 in Plano. |
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http://www.realoptionsforwomen.com
(87 words)
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| | Mamutong |
| | This work is licensed under a Creative Commons License. | | | I don't know why, but I really like sisig. | | | Update: Another refreshing activity is to hit the "Mark All Read" button on Bloglines and then watch all the fresh news flow in. |
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http://blog.nich3.net
(2889 words)
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| | Crystal Ball |
| | Simulation, forecasting, optimization, real options analysis, training material | | | Crystal Ball applications transform your spreadsheets into dynamic models that solve almost any problem involving uncertainty, variability and risk. | | | Crystal Ball is a full suite of Microsoft® Excel-based applications for Monte Carlo simulation, time-series forecasting, optimization and real options analysis. |
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http://crystalball.com
(133 words)
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