A Stochastic Control Framework For Real Options In Strategic Evaluation

Author : Alexander Vollert
Publisher : Springer Science & Business Media
Page : 275 pages
File Size : 44,5 Mb
Release : 2012-12-06
Category : Mathematics
ISBN : 9781461220688

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A Stochastic Control Framework for Real Options in Strategic Evaluation by Alexander Vollert Pdf

The theoretical foundation for real options goes back to the mid 1980s and the development of a model that forms the basis for many current applications of real option theory. Over the last decade the theory has rapidly expanded and become enriched thanks to increasing research activity. Modern real option theory may be used for the valuation of entire companies as well as for particular investment projects in the presence of uncertainty. As such, the theory of real options can serve as a tool for more practically oriented decision making, providing management with strategies maximizing its capital market value. This book is devoted to examining a new framework for classifying real options from a management and a valuation perspective, giving the advantages and disadvantages of the real option approach. Impulse control theory and the theory of optimal stopping combined with methods of mathematical finance are used to construct arbitrarily complex real option models which can be solved numerically and which yield optimal capital market strategies and values. Various examples are given to demonstrate the potential of this framework. This work will benefit the financial community, companies, as well as academics in mathematical finance by providing an important extension of real option research from both a theoretical and practical point of view.

Author : Alexander Vollert
Publisher : Birkhauser
Page : 266 pages
File Size : 40,5 Mb
Release : 2003
Category : Business enterprises
ISBN : 3764342587

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A Stochastic Control Framework for Real Options in Strategic Valuation by Alexander Vollert Pdf

This text unfolds and examines a new framework for classifying real options from a management as well as a valuation perspective, giving the advantages and disadvantages of the real option approach. Impulse control theory and the theory of optimal stopping combined with methods of mathematical finance are used to construct arbitrarily complex real option models which can be solved numerically and yield optimal capital market strategies and values. Various examples are given, demonstrating the potential of the proposed framework.

Author : Han T. J. Smit,Lenos Trigeorgis
Publisher : Princeton University Press
Page : 504 pages
File Size : 47,6 Mb
Release : 2012-01-12
Category : Business & Economics
ISBN : 9781400829392

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Strategic Investment by Han T. J. Smit,Lenos Trigeorgis Pdf

Corporate finance and corporate strategy have long been seen as different sides of the same coin. Though both focus on the same broad problem, investment decision-making, the gap between the two sides--and between theory and practice--remains embarrassingly large. This book synthesizes cutting-edge developments in corporate finance and related fields--in particular, real options and game theory--to help bridge this gap. In clear, straightforward exposition and through numerous examples and applications from various industries, Han Smit and Lenos Trigeorgis set forth an extended valuation framework for competitive strategies. The book follows a problem-solving approach that synthesizes ideas from game theory, real options, and strategy. Thinking in terms of options-games can help managers address questions such as: When is it best to invest early to preempt competitive entry, and when to wait? Should a firm compete in R&D or adopt an accommodating stance? How does one value growth options or infrastructure investments? The authors provide a wide range of valuation examples, such as acquisition strategies, R&D investment in high-tech sectors, joint research ventures, product introductions in consumer electronics, infrastructure, and oil exploration investment. Representing a major step beyond standard real options or strategy analysis, and extending the power of real options and strategic thinking in a rigorous fashion, Strategic Investment will be an indispensable guide and resource for corporate managers, MBA students, and academics alike.

Author : Jeffrey J. Reuer,Tony W. Tong
Publisher : Emerald Group Publishing
Page : 520 pages
File Size : 53,7 Mb
Release : 2007-07-05
Category : Business & Economics
ISBN : 9781849504942

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Real Options Theory by Jeffrey J. Reuer,Tony W. Tong Pdf

Examines the ways in which real options theory can contribute to strategic management. This volume offers conceptual pieces that trace out pathways for the theory to move forward and presents research on the implications of real options for strategic investment, organization, and firm performance.

Author : Anonim
Publisher : Unknown
Page : 888 pages
File Size : 51,5 Mb
Release : 2008
Category : Mathematics
ISBN : UOM:39015082440754

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Mathematical Reviews by Anonim Pdf

Author : Anonim
Publisher : Unknown
Page : 348 pages
File Size : 52,6 Mb
Release : 2005
Category : Bibliography
ISBN : UOM:39015079882588

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The Bibliographic Index by Anonim Pdf

Author : Johnathan Mun
Publisher : Wiley
Page : 656 pages
File Size : 51,7 Mb
Release : 2006-02-17
Category : Business & Economics
ISBN : 9780471769965

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Real Options Analysis by Johnathan Mun Pdf

"Mun demystifies real options analysis and delivers a powerful, pragmatic guide for decision-makers and practitioners alike. Finally, there is a book that equips professionals to easily recognize, value, and seize real options in the world around them." --Jim Schreckengast, Senior VP, R&D Strategy, Gemplus International SA, France Completely revised and updated to meet the challenges of today's dynamic business environment, Real Options Analysis, Second Edition offers you a fresh look at evaluating capital investment strategies by taking the strategic decision-making process into consideration. This comprehensive guide provides both a qualitative and quantitative description of real options; the methods used in solving real options; why and when they are used; and the applicability of these methods in decision making.

Author : Anonim
Publisher : Unknown
Page : 2576 pages
File Size : 46,6 Mb
Release : 2002
Category : American literature
ISBN : STANFORD:36105025417838

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Books in Print Supplement by Anonim Pdf

Author : Lenos Trigeorgis
Publisher : MIT Press
Page : 452 pages
File Size : 54,8 Mb
Release : 1996-03-14
Category : Business & Economics
ISBN : 026220102X

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Real Options by Lenos Trigeorgis Pdf

Comprehensive in scope, Real Options reviews current techniques of capital budgeting and details an approach (based on the pricing of options) that provides a means of quantifying the elusive elements of managerial flexibility in the face of unexpected changes in the market. In the 1970s and the 1980s, developments in the valuation of capital-investment opportunities based on options pricing revolutionized capital budgeting. Managerial flexibility to adapt and revise future decisions in order to capitalize on favorable future opportunities or to limit losses has proven vital to long-term corporate success in an uncertain and changing marketplace. In this book Lenos Trigeorgis, who has helped shape the field of real options, brings together a wealth of previously scattered knowledge and research on the new flexibility in corporate resource allocation and in the evaluation of investment alternatives brought about by the shift from static cash-flow approaches to the more dynamic paradigm of real options—an approach that incorporates decisions on whether to defer, expand, contract, abandon, switch use, or otherwise alter a capital investment. Comprehensive in scope, Real Options reviews current techniques of capital budgeting and details an approach (based on the pricing of options) that provides a means of quantifying the elusive elements of managerial flexibility in the face of unexpected changes in the market. Also discussed are the strategic value of new technology, project interdependence, and competitive interaction. The ability to value real options has so dramatically altered the way in which corporate resources are allocated that future textbooks on capital budgeting will bear little resemblance to those of even the recent past. Real Options is a pioneer in this area, coupling a coherent picture of how option theory is used with practical insights in into real-world applications.

Author : Anonim
Publisher : Unknown
Page : 724 pages
File Size : 42,7 Mb
Release : 2003
Category : American literature
ISBN : UOM:39015066043137

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American Book Publishing Record by Anonim Pdf

Author : Martha Amram,Nalin Kulatilaka
Publisher : Oxford University Press on Demand
Page : 246 pages
File Size : 52,9 Mb
Release : 1999
Category : Business & Economics
ISBN : 0875848451

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Real Options by Martha Amram,Nalin Kulatilaka Pdf

Using real-world examples and clear case studies, the authors provide investors and managers with an innovative method for assessing a company's non-financial assets, allowing them to assess opportunities whose financial rewards are less than certain.

Author : Lenos Trigeorgis
Publisher : Risk Publications
Page : 372 pages
File Size : 54,5 Mb
Release : 1999
Category : Asignación de recursos - Toma de decisiones
ISBN : 1899332472

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Real Options and Business Strategy by Lenos Trigeorgis Pdf

A key reference title on the newest incarnation of corporate risk management, its applications and its value as an alternative to more 'traditional' valuation methods.

Author : Anonim
Publisher : Unknown
Page : 44 pages
File Size : 55,8 Mb
Release : 2007
Category : Agriculture
ISBN : MINN:31951D02407124U

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Agribusiness & Applied Economics Report by Anonim Pdf

Author : Marion A. Brach
Publisher : John Wiley & Sons
Page : 384 pages
File Size : 40,5 Mb
Release : 2003-04-07
Category : Business & Economics
ISBN : 9780471445562

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Real Options in Practice by Marion A. Brach Pdf

Explores real option theory applied in practice Real options are quickly becoming the valuation and decision-making method of choice for many companies, including oil and gas companies, utilities and natural resource companies, pharmaceutical and biotech companies, Internet companies, and many others. Real Options in Practice allows readers to view the world of real options from the vantage point of a corporate practitioner applying real option valuation techniques on a regular basis. Expert Marion Brach describes the challenges of implementing a real option framework in practice within a corporate setting. Touching on the real options most firms care about, Real Options in Practice identifies the classic types of real options-deferral, abandonment, switching, expansion, and compound-and explores the main concepts critical to understanding real option theory. Through Brach's own three-step real option valuation method readers will learn how the theory of real options is now being applied to drive better, more profitable corporate decision-making. Marion A. Brach, MD, MBA (Hagen, Germany), has undertaken financial valuation of business opportunities and acquisitions using scenario and real option valuation in the biotech industry. A recognized expert on real option theory and practice, Brach received her MBA from the Manchester Business School and frequently speaks at real option seminars.

Author : Jamie Rogers
Publisher : Unknown
Page : 207 pages
File Size : 42,6 Mb
Release : 2009
Category : Capital investments
ISBN : 1349367079

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Strategy, Value and Risk by Jamie Rogers Pdf

The surge of innovation in information technology at the end of the twentieth century reduced the cost of communications, which facilitated the globalization of the production and capital markets. Globalization has in turn spurred competition and consequently innovation. Sustainable competitive advantage is an increasingly difficult proposition in this environment, a fact which raises a number of issues for organizations: how to create and manage value, how to improve an organization's capabilities to respond and adapt, how to manage the effect of competition on industry structures and how to foster and manage innovation. € In response to these issues one concept is having an impact and influence on organizations. Real options, a form of advanced financial analysis, apply financial options theory to real assets. The concept offers a framework that can link value to risk and uncertainty, and the ability to manage the strategic opportunities that lie in an increasingly dynamic environment. Updated and revised, this second edition illustrates the issues with detailed case studies.