000			05004nam a22003855i 4500
999			_c72960 _d72960
001			21140317
003			CITU
005			20230210111144.0
007			cr an aaaaa
008			190819s2019 nju 000 0 eng
010			_a 2019948429
020			_a9781786305220
020			_a9781119687511
040			_aDLC _beng _erda _cDLC
041			_aeng
042			_apcc
082			_a332.6
100	1		_aHeller, David, _eauthor.
245	1	0	_aInvestment decision-making using optional models / _c edited by David Heller.
263			_a1909
264		1	_aHoboken : _bISTE Ltd / John Wiley and Sons Inc, _c2019.
300			_a1 online resource
336			_atext _btxt _2rdacontent
337			_acomputer _bc _2rdamedia
338			_aonline resources _bcr _2rdacarrier
500			_aABOUT THE AUTHOR David Heller is a Professor-Researcher in Finance and Head of the Master’s course in Finance at ISC Paris, France.
505			_aIntroduction ix Chapter 1. Risk and Flexibility Integration in Valuation 1 1.1. Introduction 1 1.2. The scope of real options 2 1.2.1. The concept of real options 3 1.2.2. Empirical use of real options 7 1.2.3. Paradigms in options 12 1.3. Valuation of investments by real options 20 1.3.1. Optional valuation of investments in a discrete-time approach 20 1.3.2. Optional valuation of investments in a continuous-time approach 28 1.4. Option model extensions by incorporating new parameters (Levyne and Sahut 2008) 35 1.4.1. Stochastic volatility 36 1.4.2. Transaction costs and models with jumps 39 1.4.3. Option pricing 41 1.5. Conclusion 44 Chapter 2. Optional Modeling of Investment Choices and Surplus Value Linked to the Option to Invest 47 2.1. Introduction 47 2.2. Framework of optional interactions and option to develop an investment project 48 2.2.1. Real investment opportunity 50 2.2.2. Opportunity to postpone decision-making to infinity 52 2.2.3. Development cycle and taking into account new information within dependent projects and focusing on research and development 62 2.3. Option to exchange and abandon an investment project 65 2.3.1. Real options within the replacement cycle and disinvestment alternatives 66 2.3.2. The value of an investment project in the natural resources sector 69 2.3.3. Valuation of the abandonment option by investors 85 2.4. Growth option resulting from investment decisions and acquisition strategies 88 2.4.1. Company profiles justifying growth option value 89 2.4.2. Growth option value related to interactions between financing and investment decisions 90 2.4.3. Acquisition strategies by the real options approach 98 2.5. Conclusion 106 Chapter 3. Data Generation Applied to Strategic and Operational Option Models 107 3.1. Introduction 107 3.2. Determining the right time to invest 107 3.2.1. Application to the carry option 108 3.2.2. Application of the Dixit and Pindyck model 110 3.3. Flexibility of asset exchange, abandonment and temporary shutdown of projects 113 3.3.1. Application to the exchange option 113 3.3.2. Application to the abandonment option 115 3.3.3. Application to the temporary shutdown option 116 3.4. Incorporation of development phases 121 3.4.1. Implementation of a two-stage investment project 121 3.4.2. Valuation of a sequential project 122 Conclusion 135 Appendices 139 Appendix 1. Demonstration of the CRR Formula 141 Appendix 2. Stochastic Differential Calculus 147 Appendix 3. Test of the Black and Scholes Formula and Return on the Log–Normal Distribution 155 Appendix 4. Demonstration of the Black and Scholes Formula 159 Bibliography 165 Index 173
520			_aIn order to create value, companies must allocate their resources effectively and evaluate investment alternatives. This book examines, from a theoretical and empirical point of view, how managerial flexibility can be integrated into investment decisions through the optional approach. Unlike the traditional net present value method, the actual options take into account indeterminate elements. These lead to unpredictable cash flows at the time of the investment decision, especially in the context of complex and risky projects. The book puts into perspective the use of optional models and their interactions. The different categories of options are the subject of practical applications, through analysis of investment decisions where uncertainty is growing. Therefore, studies make it possible to consider the flexible nature of investment choices by integrating new information and risk over time.
650		0	_aInvestments _xDecision making _xStatistical methods.
655		0	_aElectronic books
856			_yFull text available at Wiley Online Library Click here to view _uhttps://onlinelibrary.wiley.com/doi/book/10.1002/9781119687511
906			_a0 _bibc _corignew _d2 _eepcn _f20 _gy-gencatlg
942			_2ddc _cER