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1 Introduction to Real Options Analysis |
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1 | (16) |
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1 | (6) |
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1.1.1 Basics of Option Theory |
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2 | (2) |
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1.1.2 From Financial Options to Real Options |
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4 | (1) |
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1.1.3 Common Real Options |
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5 | (2) |
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1.2 A Simple Real Options Analysis Example |
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7 | (2) |
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1.3 Key Strengths of Real Options Analysis |
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9 | (1) |
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1.4 Weaknesses of Real Options Analysis |
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10 | (1) |
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11 | (6) |
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1.5.1 Analytical Versus Numerical |
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11 | (1) |
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1.5.2 Dynamic Programming |
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12 | (1) |
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12 | (1) |
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1.5.4 Comparing Dynamic Programming and Contingent Claims |
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13 | (1) |
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1.5.5 Monte Carlo Simulation |
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14 | (1) |
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15 | (2) |
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2 Comparison of Real Options Analysis and Other Methods |
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17 | (10) |
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17 | (1) |
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2.2 Net Present Value Analysis |
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18 | (1) |
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2.3 Decision Tree Analysis |
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19 | (2) |
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2.4 Real Options Analysis |
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21 | (3) |
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2.4.1 Replicating Portfolio Approach |
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21 | (1) |
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2.4.2 Risk-Neutral Probability Approach |
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22 | (2) |
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24 | (3) |
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25 | (2) |
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3 Real Options Methods Illustrated |
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27 | (60) |
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3.1 Netscape: Black-Scholes |
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27 | (8) |
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3.1.1 The Valuation Formula |
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28 | (6) |
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34 | (1) |
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34 | (1) |
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3.1.4 Strengths and Weaknesses |
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34 | (1) |
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3.2 Option Pricing: Cox, Ross and Rubinstein |
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35 | (13) |
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35 | (2) |
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3.2.2 The Binomial Option Pricing Formula |
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37 | (6) |
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3.2.3 The Main Objectives |
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43 | (1) |
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3.2.4 Strengths and Weaknesses |
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43 | (1) |
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3.2.5 The Binomial Tree Method Illustrated |
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43 | (5) |
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3.3 The Portes Case: Copeland and Antikarov |
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48 | (14) |
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48 | (1) |
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3.3.2 The Main Objectives |
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48 | (1) |
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49 | (11) |
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3.3.4 Strengths and Weaknesses |
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60 | (2) |
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3.4 The Boeing Approach: Datar Mathews |
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62 | (4) |
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62 | (1) |
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3.4.2 The Main Objectives |
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63 | (1) |
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63 | (2) |
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3.4.4 Strenghts and Weaknesses |
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65 | (1) |
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3.5 Parking Garage: de Neufville, Scholtes and Wang |
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66 | (17) |
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67 | (1) |
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3.5.2 The Main Objectives |
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67 | (1) |
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68 | (5) |
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73 | (4) |
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3.5.5 Strenghts and Weaknesses |
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77 | (2) |
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3.5.6 The Generalized Demand Model |
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79 | (4) |
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3.6 Summary Real Options Methods |
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83 | (4) |
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84 | (3) |
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4 The Impact of Probability Distributions |
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87 | (10) |
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4.1 Uniform Distribution, Beta Distribution and PERT-Distribution |
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88 | (3) |
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4.1.1 The Uniform Distribution |
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88 | (1) |
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4.1.2 The Beta Distribution |
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88 | (3) |
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4.1.3 The PERT-Distribution |
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91 | (1) |
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4.2 Design Comparative Study Probability Distributions |
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91 | (2) |
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4.3 Results Simulation Studies |
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93 | (3) |
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4.3.1 Simulation Results of Different Parameter Values of the Beta Distribution |
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94 | (1) |
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4.3.2 Results Comparative Study of Three Probability Distributions |
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95 | (1) |
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96 | (1) |
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96 | (1) |
Glossary |
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97 | (8) |
Index |
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105 | |