The Real Options Approach to Valuation: Challenges and Opportunities
Latin American Journal of Economics-formerly Cuadernos de Economía, 2013, vol. 50, issue 2, 163-177
This paper provides an overview of the real options approach to valuation mainly from the point of view of the author who has worked in this area for over 30 years. After a general introduction to the subject, numerical procedures to value real options are discussed. Recent developments in the valuation of complex American options has allowed progress in the solution of many interesting real option problems. Two applications of the real options approach are discussed in more detail: the valuation of natural resource investments and the valuation of research and development investments.
Keywords: Real; options (search for similar items in EconPapers)
JEL-codes: G12 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5) Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ioe:cuadec:v:50:y:2013:i:2:p:163-177
Ordering information: This journal article can be ordered from
Access Statistics for this article
Latin American Journal of Economics-formerly Cuadernos de Economía is currently edited by Raimundo Soto
More articles in Latin American Journal of Economics-formerly Cuadernos de Economía from Instituto de Economía. Pontificia Universidad Católica de Chile. Contact information at EDIRC.
Bibliographic data for series maintained by Jaime Casassus ().