Investment decision-making using optional models / David Heller.

Format:

Book

Author/Creator:

Heller, David, author.

Contributor:

Ben Bouheni, Faten, editor.

Series:

Modern finance, management innovation & economic growth set ; Volume 2

Language:

English

Subjects (All):

Investments--Decision making.

Investments.

Physical Description:

1 online resource (205 pages) : Illustrations.

Place of Publication:

London : ISTE Limited ; Hoboken, New Jersey : John Wiley & Sons, Incorporated, 2020.

Summary:

In 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.

Contents:

Risk and Flexibility Integration in Valuation

Optional Modeling of Investment Choices and Surplus Value Linked to the Option to Invest

Data Generation Applied to Strategic and Operational Option Models

Conclusion

Appendices. Demonstration of the CRR Formula

Stochastic Differential Calculus

Test of the Black and Scholes Formula and Return on the Log-Normal Distribution

Demonstration of the Black and Scholes Formula.

Notes:

Description based on print version record.

Includes bibliographical references and index.

ISBN:

9781119687504

1119687500

9781119687481

1119687489

9781119687511

1119687519