Real Options Analysis : Tools and Techniques for Valuing Strategic Investments and Decisions

by Mun, Johnathan

• ISBN13: 9780471747482
• ISBN10: 0471747483
• Edition: 2nd
• Format: Hardcover
• Copyright: 2005-11-04
• Publisher: Wiley

Summary

"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, FranceCompletely 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 Biography

JOHNATHAN MUN, PhD, is currently the CEO of Real Options Valuation, Inc., as well as the creator of the Real Options' Super Lattice Solver software for real option valuation and Risk Simulator Monte Carlo simulation software. Prior to starting his own firm, he was the vice president of analytics at Decisioneering, Inc. Mun is also a full professor at the U.S. Naval Postgraduate School (California) and the University of Applied Sciences (Switzerland). He has authored numerous Wiley books, including the first edition of Real Options Analysis, Real Options Analysis Course, Applied Risk Analysis, and Valuing Employee Stock Options. Mun has also taught and consulted for over 300 corporations in twenty countries worldwide on risk analysis and real options.

Table of Contents

List of Figures.

Acknowledgments.

Preface.

PART ONE: THEORY.

Chapter 1. A New Paradigm?

Chapter 2. Traditional Valuation Approaches.

Chapter 3. Real Options Analysis.

Chapter 4. The Real Options Process.

Chapter 5. Real Options, Financial Options, Monte Carlo Simulation, and Optimization.

PART TWO: APPLICATION.

Chapter 6. Behind the Scenes.

Chapter 7. Real Options Models.

Chapter 8. Advanced Options Problems.

Chapter 9. Introduction to the Real Options Valuation's Super Lattice Software (SLS) and Risk Simulator Software.

Chapter 10. Real Option Valuation Application Cases.

Chapter 11. Real Options Case Studies.

Chapter 12. Results Interpratation and Preseantation.