Some Important Issues Involving Real Options

45 Pages Posted: 2 Feb 2005

See all articles by Gordon Sick

Gordon Sick

University of Calgary - Haskayne School of Business

Andrea Gamba

University of Warwick - Finance Group

Abstract

This paper provides an introduction to real options, as well as highlighting some important issues that are often neglected by real options analysts. While many books and surveys have been written on real options, there are some ubiquitous concepts that are not well-understood by many authors and practitioners. The objective of this paper is to redress this shortfall.

The paper discusses organizational issues that impede adoption of real options strategies. It discusses modelling and analytic techniques for real options.

Keywords: Real Options, Capital Budgeting, Numerical Methods

JEL Classification: C61, D92, G31

Suggested Citation

Sick, Gordon and Gamba, Andrea, Some Important Issues Involving Real Options. Multinational Finance Journal, Forthcoming, WBS Finance Group Research Paper No. 37, Available at SSRN: https://ssrn.com/abstract=645581

Gordon Sick (Contact Author)

University of Calgary - Haskayne School of Business ( email )

2500 University Drive, NW
Calgary, Alberta T2N 1N4
Canada
403-220-7165 (Phone)
403-282-0095 (Fax)

Andrea Gamba

University of Warwick - Finance Group ( email )

Scarman Road
Coventry, CV4 7AL
Great Britain
+44 (0)24 765 24 542 (Phone)
+44 (0)24 765 23 779 (Fax)

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