Some Important Issues Involving Real Options: An Overview

51 Pages Posted: 26 Jun 2015

See all articles by Gordon Sick

Gordon Sick

University of Calgary - Haskayne School of Business

Andrea Gamba

University of Warwick - Finance Group

Date Written: June 25, 2015

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 modeling 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: An Overview (June 25, 2015). Multinational Finance Journal, Vol. 14, No. 1/2, p. 73-123, 2010, Available at SSRN: https://ssrn.com/abstract=2623009

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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