Strategic Real Options: A Modern Framework for Business Valuation

This book provides a comprehensive overview of real options, financial instruments that give the holder the right, but not the obligation, to buy or sell an asset at a specified price within a specified time period. This flexibility can be extremely valuable for businesses, as it allows them to respond to changing market conditions and make strategic decisions that can maximize their value.

Real options can be used in a wide variety of business situations. For example, a company may acquire a real option to purchase a piece of land in order to gain the flexibility to develop the land in the future. Similarly, a company may acquire a real option to sell a division in order to gain the flexibility to exit the business if conditions change. Real options can also be used to hedge against risk. For example, a company may acquire a real option to purchase a commodity in order to protect itself against the risk of rising prices.

The valuation of real options is a complex process that requires specialized knowledge and expertise. However, the basic principles of real option valuation are relatively straightforward. The Black-Scholes option pricing model is a widely used tool for valuing real options. This model takes into account factors such as the asset price, the exercise price, the time to expiration, and the volatility of the asset price.

This book provides a detailed explanation of the Black-Scholes model and other real option valuation techniques. It also discusses the applications of real options in a variety of business situations, including investment analysis, capital budgeting, mergers and acquisitions, and risk management.

By understanding the basic principles of real option valuation, businesses can make informed decisions about when and how to use these instruments. This book provides a comprehensive overview of real options that will help businesses create value and manage risk.

This book is written for business professionals who want to learn more about real options. It is also a valuable resource for students and academics who are interested in the field of real options.

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Publisher ‏: ‎ PageBook24.com (January 13, 2025)
Language : ‎ English
Dimensions ‏: ‎ 6 x 9 inches
Pages ‏: ‎ 182 pages

Pasquale De Marco stands as a prolific author whose literary prowess knows no bounds. With a passion for storytelling that transcends genres, he has made a name for himself as a versatile writer with the extraordinary ability to captivate readers across diverse literary landscapes. His journey as an author is marked by an insatiable curiosity, a love for the written word, and a relentless commitment to sharing knowledge and experiences with the world.

Pasquale De Marco collaborates with a dedicated team of ghostreaders who assist him in evaluating and editing the manuscripts. His collaborators are not only skilled professionals but also avid readers who purchase and read books as a personal hobby. This unique blend of creativity allows Pasquale to push the boundaries of traditional publishing, making literature more accessible and diverse.