Applications of real option valuation methodology
Kua, Sit Tong.
Date of Issue2000
School of Mechanical and Aerospace Engineering
The following dissertation introduces and explains the concept of financial option valuation to real assets for example in field of mineral exploration. Real option enables practitioners to value the embedded options associated with managerial flexibility in response to market conditions of investments. This dissertation provides examples of how these valuations are carried out. The dissertation also provides how real option can be applied to strategic investment decisions by the senior management.
Nanyang Technological University