Consideración de La Flexibilidad en El Análisis (Opciones Reales Introducing Flexibility in the Analysis: Real Options)

Abstract:     
This is a course material from the book Managerial Decision Making Under Risk and Uncertainty. The book is originally in Spanish and is untitled as Decisiones empresariales bajo riesgo e incertidumbre. The level of the book is basic. We use very few mathematics and it is expected to be used by managers.

In this tenth and last chapter we present a brief and simple introduction to financial options and the Black-Scholes model. Using the basic concept of options we introduce the reader to the idea of real options to profit from flexibility and variability and volatility.

Note: Downloadable document is in Spanish.

Number of Pages in PDF File: 62

Keywords: Options, real options, Black-Scholes model, NPV, Net Present Value

JEL Classification: G31

working papers series