REAL OPTIONS VALUATION CONCERNING THE LEARNING PROCESS ON LITECOIN MINING PROJECTS FOR 1 YEAR

• Main Author: Sitompul, Susanty
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/75055
• Institution: Institut Teknologi Bandung

Litecoin is one type of cryptocurrency that have price fluctuations with significant volatility, so it has the potential to provide high returns even with high risks. In this Final Project, the real options methods are applied concerning the learning process in the Litecoin mining project as one of the strategies for analyzing an investment in the project. With the learning process, companies that will invest in the projects can learn more about the characteristics of the project that can reduce project-related uncertainty. Real options method can calculate the company's flexibility in the project so that it can model the reality of the project. The real options valuation with the learning process on Litecoin mining projects with a 1-year period is calculated using the binomial method with changes in time and the trinomial method with changes in volatility. With this valuation, companies that will invest in the project can make decisions that maximize profits or minimize losses so that optimal investment results are obtained.