Description
Book SynopsisThis book is about the real options approach to strategic investments, showing how to capitalize on uncertainty through strategic investments, contracts, and use of the financial markets.
Trade ReviewReal Options is an exciting, accessible introduction to one of the most useful innovations of modern finance. Filled with lively examples from various industries, the book reveals the strategic power of real options in business planning. * David G. Luenberger, Professor of Engineering-Economic Systems and Operations Research, Stanford University, and author of Investment Science *
Table of ContentsPreface PART I: The Real Options Potential 1: Introduction 2: Uncertainty Creates Opportunities 3: Option Valuation: The Nobel Prize - Winning Breakthrough 4: From Wall Street to Main Street: Options on Real Assets 5: Disciplined Strategy 6: Quick Lessons Part II: The Real Options Solution Process 7: The Four-Step Solution Process 8: Calculating Option Values 9: Adjusting for Leakage in Value Part III: A Portfolio of Applications 10: Valuing a Start-up 11: Investing in a Start-up 12: Exploring for Oil 13: Developing a Drug 14: Investing in Infrastructure 15: Valuing Vacant Land 16: Buying Flexibility 17: Combining Real and Financial Flexibility 18: Investing to Preempt Competitors 19: Writing a License Part IV: Conclusion 20: Changing the Questions We Ask Appendix: A Quick Introduction to Discounted Cash Flow and the Estimation of Volatility Guide to Literature Notes References Index About the Authors
