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Topic: Real options

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	Using real options in strategic decision making
		Therefore a real option is a free loan, and its value increases with the interest rate and the length of time before you invest.
		A useful taxonomy classifies real options by whether they are proprietary or shared, whether they are simple or compounded (options on options) and whether the option-decision expires or can be deferred.
		Real options focus on "dynamic complexity": the evolution of a few complex factors over time that determine the value of investment and cash flows.
	mba.tuck.dartmouth.edu /paradigm/spring2000/articles/walters-decision_making.html (1319 words)

	Real Options Conference 2002 Abstracts (Site not responding. Last check: 2007-10-06)
		Real options reasoning is a logical for funding projects that maximizes learning and access to upside opportunities while containing costs and downside risk.
		Furthermore, we extend the theory of strategic real options from which it is known that the follower's investment timing is irrelevant for the decision of the leader.
		Property in financial options (derivatives) is stated and transferred through contracts, while in real options property may arise from assets under the management of the firm, without a formal contract properly defining property.
	www.realoptions.org /abstracts/abstracts02.html (7850 words)

	Optimize Magazine > Financial Management > Real Options, Real Opportunities > January 2002 (Site not responding. Last check: 2007-10-06)
		Real options offer another valuable comparison with financial investing: that holding a diverse portfolio of stocks is less risky than owning one stock.
		Real assets can be evaluated using techniques developed for financial options, such as the Black and Scholes model (a mathematical holy grail for determining the fair value of options that earned its creators the 1997 Nobel Prize in Economics), or the Cox, Ross, and Rubinstein methodology, also a form of option valuation.
		Three things influence the price of stock options: the spread between the current price and the exercise price, the length of time for which the option is good, and the volatility of the stock in question.
	www.colorado.edu /engineering/alleman/print_files/pr_financial.html (2523 words)

	World of Real Options - Creating Value in an uncertain environment (Site not responding. Last check: 2007-10-06)
		A real option is the right - but not the obligation - to acquire the gross present value of expected cash flows by making an irreversible investment on or before the date the opportunity ceases to be available.
		Real Options and have been studied extensively over the last decade.
		Real Option Analysis gives a better understanding of the expected value that investments into an uncertain environment can generate, as it is able to capture managerial flexibility inherent in the project.
	www.world-of-realoptions.com (267 words)

	CFO Europe (Site not responding. Last check: 2007-10-06)
		Real options analysis is based on the observation, first made more than 20 years ago, that a company evaluating an existing asset or potential investment is in much the same position as the holder of a financial option, such as those written on stocks or commodity prices.
		Real options practitioners have to overcome two major obstacles: first, they have to find a number to put on the real option value; and second, they have to persuade their organisations to change the way they think about valuation and investment.
		Another big headache is that a real asset is not typically associated with a single real option, but with many--and the respective values of those different options will be linked to one another via a spider's web of interdependencies.
	www.cfoeurope.com /199908e.html (6111 words)

	Real Options (Site not responding. Last check: 2007-10-06)
		The Centre, in association with the Real Options Group, held the 4th International Conference on Real Options:Theory Meets Practice from July 5th-8th 2000 in the Judge Institute.
		Real option valuation uses contingent claims analysis to value irreversible investments with uncertain payoffs.
		The proceedings of the Real Options Forum, held in the Centre on June 22nd 1999, are now available in PDF format from the real options forum page.
	www-cfr.jims.cam.ac.uk /research/real.html (314 words)

	Capital Strategy Private Circulation Letter - Article: Real Options (Site not responding. Last check: 2007-10-06)
		Financial options are options to buy and sell shares or some financial instrument at some time in the future.
		Paying $5 million for the option, plus another $5 million to prove up the technology, in return for a 50/50 chance of owning something worth $20 million is not good enough odds for business.
		Unlike financial options that have little or no uncertainty as to when they are exercised, real options can usually be exercised at any time.
	www.runge.com /capital/capnews/news003.htm (1149 words)

	Fool.com: Putting "Real Options" to Work (Fool's Den) January 30, 2001
		In creating the concept of real options, Mauboussin is essentially acknowledging that companies are valued based on a combination of known business value plus a value that represents the opportunities for future value creation.
		Of course, real options are available to every company, though some companies have more options for value creation available to them than others.
		In his white paper on real options (available at capatcolumbia.com), Mauboussin notes that real options should be considered especially when three factors are present.
	www.fool.com /research/2001/foolsden010130.htm (1170 words)

	Campbell R. Harvey's Identifying Real Options
		The topic of real options applies the option valuation techniques to capital budgeting exercises in which a project is coupled with a put or call option.
		Shutdown options are also valuable in farming (where they may be exercised if the cost of fertilizing, watering and harvesting exceeds the sale price of the product) and real-estate development (where they may be exercised if the cost of construction exceeds rent revenues).
		The option valuation framework is particularly useful to the corporate strategist because it provides an integrative analysis of both operating and financial options associated with the combined investment and financing decisions.
	faculty.fuqua.duke.edu /~charvey/Teaching/BA456_2002/Identifying_real_options.htm (3662 words)

	Real Options : : Managing Strategic Investment in an Uncertain World
		At that time real options was a compelling academic concept, and one that seemed to have important managerial applications.
		In those heady days, real options was seen as a way of possibly explaining high stock values and also as a way of identifying and organizing company strategy around valuable growth opportunities.
		You'll find links to articles, books, other rich real options websites and also a few essays that capture our thinking on the benefits and the pitfalls of the real options approach.
	www.real-options.com (248 words)

	Using Real Options Software to Value Complex Options by Jonathan Mun
		The real options approach incorporates a learning model, such that management makes better and more informed strategic decisions when some levels of uncertainty are resolved through the passage of time.
		However, in real options analysis, the mainstream methods that are most widely used are the closed-form solutions, partial-differential equations, and the binomial lattice trees.
		The real options models included in the software are American options, European options, barrier options, contraction options, expansion options, stochastic timing options, switching options, two-asset correlation options, et cetera, all driven in an easy-to-use graphical user interface.
	www.fenews.com /fen27/RealOptions.html (2584 words)

	Exploiting Uncertainty
		A revolutionary concept in corporate finance called ''real options theory.'' In a nutshell, it says that when the future is highly uncertain, it pays to have a broad range of options open.
		Executives realized that it would be smarter to ship partially assembled printers and then customize them at the warehouse, once it had firm orders.
		The term ''real options'' was coined in 1977 by Stewart C. Myers of Massachusetts Institute of Technology.
	www.businessweek.com /1999/99_23/b3632141.htm (2160 words)

	The Bottom Line: The 'real' options problem - Jul. 17, 2002
		Where options absolutely do matter is in their dilutive effect.
		The more interesting figure is the so-called options overhang, or the potential dilution if all a company's outstanding employee stock options were exercised and sold.
		At Broadcom, a semiconductor maker, the ratio of options outstanding to shares outstanding is 40 percent.
	money.cnn.com /2002/07/17/commentary/bottomline/lashinsky (574 words)

	Real estate, alaska real estate, san antonio texas real estate (Site not responding. Last check: 2007-10-06)
		Real estate, alaska real estate, san antonio texas real estate, real estate investing
		Real Estate is your home on the Internet to find listings, information and calculators to help you buy, build, sell, finance, move, improve your...
		Rental real estate can be do-it-yourself job As more people invest in rental real estate they're discovering how much time and effort is involved in...
	lookfinance.com /real-estate.html (1542 words)

	Real Options Selected Links (Site not responding. Last check: 2007-10-06)
		Real options website with focus on mathematics of real options using analogy with exotic options and excursion theory.
		Real Options Course at University of Texas, Austin.
		From Real Options to Derivatives, to MandAs and FORAD.
	www.puc-rio.br /marco.ind/ro-links.html (4681 words)

	Realoption, Realoptionen, Valuation, Real Options, Derivatives, Flexibility, Resources, Investment, Investition, ... (Site not responding. Last check: 2007-10-06)
		Real options capture the value of managerial flexibility to adapt decisions in response to unexpected market developments.
		The real options method applies financial options theory to quantify the value of management flexibility in a world of uncertainty.
		The real options method represents the new state-of-the-art technique for the valuation and management of strategic investments.
	www.real-options.de (299 words)

	Real Options Panel (Site not responding. Last check: 2007-10-06)
		As business and information system executives struggle with the issue of uncertainty in evaluating investments in technology, real options analysis has been suggested as an alternative evaluation technique.
		Despite the growth in the use of real options, serious criticisms have been raised, prompting this interesting debate about the efficacy of using real options to evaluate uncertain IT investments.
		Practical real options projects and the evolution and direction of research
	aisel.isworld.org /Proceedings/ICIS/2001/panels/realoptions.asp (214 words)

	TIME.com: Interest Rates and Your Real Estate Options -- Page 1
		San Diego County in California is one hotspot feeling a real estate slowdown, but the trend has also been noticed in other major cities including Las Vegas, Denver, Boston and Washington.
		And, if you're holding onto real estate strictly as an investment, she believes it's probably the right time to cash in.
		Rockower and Krugman may, of course, be proven wrong, and the real estate market could continue to climb for some time to come.
	www.time.com /time/business/article/0,8599,1091902,00.html (923 words)

	Home New Phoenix - Phoenix Real Estate (Site not responding. Last check: 2007-10-06)
		The Hampshire Partners Fund VI Acquires 377,587 Square Foot 7-Building Portfolio in Piscataway, New Jersey The Hampshire Companies, a full service, private real estate investment fund manager with equity in assets valued at over $1 billion, today announced the acquisition of seven buildings located near I-287 in Piscataway, New Jersey.
		RPM Ventures, LLC Expects Official New Orleans Contractor Status to be Granted by October 31 by Feds RPMand#8217;s Real Estate Strategy will try to duplicate its exclusive contract with the City of Columbus for certain New Orleansand#8217; Parishes.
		Real estate listings may or may not be listed by the real estate professional associated with this site.
	www.phoenixrealestatedestination.com (1513 words)

	Real Options Software (Site not responding. Last check: 2007-10-06)
		Real Options Software is a leading provider of consulting, software and training in the use of Real Options.
		Founded in 1996, we have extensive industry and academic experience in the use and application of Real Options.
		Real Options Software, Inc. and WellDynamics, Inc. announce collaborative effort to demonstrate the "value proposition" of Smartwell completion technology.
	www.realoptions-software.com (153 words)

	Our People
		Based on option valuation techniques proven in the financial markets, Real Options Valuation (ROV) is revolutionizing corporate strategy and bridging the gap between finance and strategic planning.
		At the Real Options Group we are committed to help managers embrace and capitalize on uncertainty by understanding how a dynamic and contingent approach to future investment decisions can enhance shareholder value in an uncertain world.
		Our goal is to provide comprehensive real options-based enterprise package solutions to assist our clients both in creating value through their internal operations on Main Street as well as realizing value on Wall Street.
	www.rogroup.com (320 words)

	s&p emini
		Real time tests have shown differences in fill prices among members to be +/- 1 tick.
		If at any time you require assistance, do not hesitate to alert us in real time via Yahoo messenger.
		Stock, Futures, and Options Trading is high risk and you can lose a great deal of money, maybe all, in the process.
	www.absolutedaytrader.com (468 words)

	SSRN-Real Options Valuation: A Monte Carlo Approach by Andrea Gamba
		This paper provides a numerical approach based on a Monte Carlo simulation for valuing dynamic capital budgeting problems with many embedded real options dependent on numerous state variables.
		We propose a way of decomposing a complex capital budgeting problem with many options into a set of simple options, suitably accounting for interaction and interdependence among them.
		We also provide a number of applications of our approach to well-known real options models and real life capital budgeting problems.
	papers.ssrn.com /abstract=302613 (267 words)

	Real estate investment options expanding - 2005-01-10 (Site not responding. Last check: 2007-10-06)
		Milwaukee real estate investors anxious to diversify their portfolios are being recruited by national firms to take part in tenancy-in-common exchange transactions that promise stable returns, capital gains tax benefits and none of the headaches of active property management.
		The tenancy-in-common real estate market is expected to more than double in 2005.
		"Tenancy-in-common real estate deals are driven by the desire of taxpayers to take advantage of tax-free exchanges," said Carl Anderson, a certified public accountant and partner at Virchow Krause and Co.'s Milwaukee office.
	www.bizjournals.com /milwaukee/stories/2005/01/10/focus4.html (733 words)

	Real Options - Computerworld
		And a broad range of experts, including academics and analysts, say Real Options may also be the best way to assign a value to IT-related risk.
		Real Options lingo may not be familiar to all IT executives.
		Only 8% of companies using the methodology said they were "extremely satisfied" with it, but Real Options' overall satisfaction score ranked fourth out of 25 methodologies studied.
	www.computerworld.com /managementtopics/roi/story/0,10801,78542,00.html (991 words)

	Blackwell Encyclopedia of Management - Contents
		Many of the entries, particularly those dealing with different countries, have been updated to reflect the current business climate of those countries.
		This new volume in the Blackwell Encyclopedia of Management 12-volume set charts the key concepts and frameworks in the growing field of Entrepreneurship, covering: 'creative destruction'; competitive dynamics; real options; social capital; corporate entrepreneuship; risk management; franchising; succession planning; location effects; spinoffs; and product innovation.
		New contributions reflect the emergence of behavioral finance (loss aversion, the house money effect, and momentum, for example), advances in asset pricing and econometric methods in finance such as the role of Threshold Autoregressive and Markov Switching models.
	www.managementencyclopedia.com /contents.asp (1046 words)

	Real Options for Women
		Real Options is a source of information to women making decisions about unplanned pregnancies, a gateway to medical care for women choosing to carry their pregnancies to term and a provider of screening for non-pregnant women at risk of sexually transmitted diseases.
		All communication is kept confidential to the extent allowed by law.
		Or visit our office at 700 E Park Blvd Suite 206 in Plano.
	www.realoptionsforwomen.com (87 words)

	InvestmentScience.com
		The purpose of this site is to promote and discuss modern investment analysis, ideas and techniques as applied to the pricing and management of real assets, or what has come to be known as Real Options.
		The high degree of uncertainty in this kind of project calls for periodic adjustment of funding policies and, consequently, a valuation methodology that accurately captures the interplay between uncertainty and management options.
		Many RandD managers have profited from realizing there is value in planning for uncertainty and that delaying some decisions until new information is available often is a value maximizing measure.
	www.investmentscience.com (572 words)

	Welcome to Decision Options, LLC. - Consulting services and products for strategic, financial and technology planning ...
		Gill Eapen, presents on real asset valuation in the 9th annual conference on Real Options in Paris, France, 06/23/2005.
		Do Asset Management, LLC (DoAM) is a privately organized investment, managed by Decision Options using proprietary technologies.
		Many publications have appeared in the recent past on real options analysis.
	www.decisionoptions.com (398 words)

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