Publication
Title
Real options
Author
Abstract
When (real sector) investment projects are characterized by a substantial degree of uncertainty and irreversibility, and carry some flexibility in the timing of execution, they are conceptually analogous to financial options. As such, the concepts and valuation models developed in the financial options literature can also be applied to characterize and value these real option investment projects. As such, after having shown this analogy between financial and real options in detail, we review the main types of real options, discuss the main valuation models developed in the literature and discuss ways in which to identify and estimate the different types of risk, as a proxy for uncertainties involved in the project.
Language
English
Source (book)
Encyclopedia of law and economics / Backhaus, J. [edit.]
Publication
Dordrecht : Springer, 2015
ISBN
978-1-4614-7883-6
Volume/pages
p. 1-10
Full text (Publisher's DOI)
UAntwerpen
Faculty/Department
Research group
Publication type
Subject
Law 
Affiliation
Publications with a UAntwerp address
External links
VABB-SHW
Record
Identification
Creation 10.04.2015
Last edited 20.06.2017
To cite this reference