Applications of real option valuation methodology

The following dissertation introduces and explains the concept of financial option valuation to real assets for example in field of mineral exploration. Real option enables practitioners to value the embedded options associated with managerial flexibility in response to market conditions of investme...

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Bibliographic Details
Main Author: Kua, Sit Tong.
Other Authors: Khoo, Guan Seng
Format: Theses and Dissertations
Published: 2008
Subjects:
Online Access:http://hdl.handle.net/10356/5904
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Institution: Nanyang Technological University
Description
Summary:The following dissertation introduces and explains the concept of financial option valuation to real assets for example in field of mineral exploration. Real option enables practitioners to value the embedded options associated with managerial flexibility in response to market conditions of investments. This dissertation provides examples of how these valuations are carried out. The dissertation also provides how real option can be applied to strategic investment decisions by the senior management.