Title :
Highly Uncertain Project Valuation Based on Sequential and Multiple Real Options
Author :
Liang Zhaohui ; Gong Dong-sheng
Author_Institution :
Coll. of Economic, Tianjin Polytech. Univ., Tianjin, China
Abstract :
Using Monte-Carlo simulation, the paper empirically researched how to calculate highly uncertain projects´ value based on sequential and multiple real options. It analyzed the flexibility value of a complex project, including a European call, a compound exchange option and an ordinary compound option. Further more, it studied option interactions.
Keywords :
Monte Carlo methods; investment; European call; Monte-Carlo simulation; compound exchange option; multiple real option; ordinary compound option; sequential real option; uncertain project valuation; Companies; Compounds; Correlation; Cost accounting; Europe; Investments; Monte Carlo methods;
Conference_Titel :
Wireless Communications Networking and Mobile Computing (WiCOM), 2010 6th International Conference on
Conference_Location :
Chengdu
Print_ISBN :
978-1-4244-3708-5
Electronic_ISBN :
978-1-4244-3709-2
DOI :
10.1109/WICOM.2010.5600145
