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Real Option
(redirected from Real Options Analysis)

    Also found in: Acronyms, Wikipedia 0.01 sec.
Real option
An option or option-like feature embedded in a real investment opportunity.
Real Option
A situation in which an investor is able to choose between two different investments where both choices involve tangible assets. That is, in a real option, the investor may choose between assets like land or inventory; financial instruments like stocks and bonds are not involved in a real option. It should be noted that a real option has nothing to do with an option contract.
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23) Consistent with the intuition from real options analysis, the price threshold should be highest when releasing water is completely irreversible ([phi] = 0) and lowest when it is costlessly reversible ([phi] [right arrow] [infinity]).
How options provided by storage affect electricity prices by Evans, Lewis; Guthrie, Graeme / Southern Economic Journal
This second edition includes a new chapter on strategic flexibility and real options analysis.
Competing for advantage, 2d ed by Reference & Research Book News
Real options analysis, on the other hand, is a more conservative approach that accounts for the fact that decisions are made in an uncertain world.
Letters and responses by Laxer, James; Grubel, Herbert; Laidler, David; Carter, Colin; Berwald, Derek; Loyns, Al; Boyens, Ing / Literary Review of Canada
 
 
 
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