Types of Real Option
The flexibility available to management – i.e. the actual “real options” – generically, will relate to project size, project timing, and the operation of the project once established. In all cases, any (non-recoverable) upfront expenditure related to this flexibility is the option premium. Real options are also commonly applied to stock valuation - see Business valuation: Option pricing approaches - as well as to various other "Applications" referenced below.
Read more about this topic: Real Options Valuation
Famous quotes containing the words types of, types, real and/or option:
“The wider the range of possibilities we offer children, the more intense will be their motivations and the richer their experiences. We must widen the range of topics and goals, the types of situations we offer and their degree of structure, the kinds and combinations of resources and materials, and the possible interactions with things, peers, and adults.”
—Loris Malaguzzi (1920–1994)
“Our children evaluate themselves based on the opinions we have of them. When we use harsh words, biting comments, and a sarcastic tone of voice, we plant the seeds of self-doubt in their developing minds.... Children who receive a steady diet of these types of messages end up feeling powerless, inadequate, and unimportant. They start to believe that they are bad, and that they can never do enough.”
—Stephanie Martson (20th century)
“The real grounds of difference upon important political questions no longer correspond with party lines.... Politics is no longer the topic of this country. Its important questions are settled... Great minds hereafter are to be employed on other matters.... Government no longer has its ancient importance.... The people’s progress, progress of every sort, no longer depends on government. But enough of politics. Henceforth I am out more than ever.”
—Rutherford Birchard Hayes (1822–1893)
“You don’t merely give over your creativity to making a film—you give over your life! In theatre, by contrast, you live these two rather strange lives simultaneously; you have no option but to confront the mould on last night’s washing-up.”
—Daniel Day Lewis (b. 1957)