Real Problems Real Options Book

Real options were once the solution to many investment decision and valuation problems. One practitioner even suggested that they would supplant traditional decision making tools and become practically universal. The truth has been very different. They are marooned in a legacy of the dotcom era and cocooned within an academic and quasi-academic environment. In fact, to use the words of one academic article, The Emperor has no Clothes. But the situation is more complicated and interesting than this suggests. Julian Roche, having first explained in detail what real options are and how they are valued, then judiciously sets out the case for and against real options in a practical, investment environment. He tackles such questions as issues in delineating questions for real options to solve, how they are valued, who supports and uses them and why, what products are in the marketplace and how useful they are, and what the future holds for this once promising development in decision making and corporate finance. Essential reading for anyone genuinely interested in this somewhat arcane aspect of finance, this book really does show the real problems in real options.Read More