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:
“... there are two types of happiness and I have chosen that of the murderers. For I am happy. There was a time when I thought I had reached the limit of distress. Beyond that limit, there is a sterile and magnificent happiness.”
—Albert Camus (1913–1960)
“As for types like my own, obscurely motivated by the conviction that our existence was worthless if we didn’t make a turning point of it, we were assigned to the humanities, to poetry, philosophy, painting—the nursery games of humankind, which had to be left behind when the age of science began. The humanities would be called upon to choose a wallpaper for the crypt, as the end drew near.”
—Saul Bellow (b. 1915)
“Masturbation is not only an expression of self-regard: it is also the natural emotional outlet of those who ... have already accepted as inevitable the wide gulf between their real futures and the expectations of their fantasies.”
—Quentin Crisp (b. 1908)
“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)