Using Real Options to Evaluate Special Orders

16 Pages Posted: 5 Feb 2004

See all articles by Mike Bowe

Mike Bowe

University of Manchester Institute of Science and Technology (UMIST)

Stefanos Zarkos

Athens Laboratory of Business Administration (ALBA)

Abstract

The aim of this article is the comparison of mutually exclusive special orders/contracts of different duration under uncertainty. Part 1, states the problem of comparing mutually exclusive orders and comments on existing methods found in literature. Part 2 describes our proposed methodology while parts 3 and 4 present numerical illustrations of our method which is applied to different scenarios. The article concludes with part 5 which summarises the key results of our analysis.

Suggested Citation

Bowe, Mike and Zarkos, Stefanos, Using Real Options to Evaluate Special Orders. Available at SSRN: https://ssrn.com/abstract=499083 or http://dx.doi.org/10.2139/ssrn.499083

Mike Bowe

University of Manchester Institute of Science and Technology (UMIST) ( email )

Oxford Road
Manchester M60 1QD, M13 9PL
United Kingdom

Stefanos Zarkos (Contact Author)

Athens Laboratory of Business Administration (ALBA) ( email )

Athinas Ave. & 2A Areos Str.
Vouliagmeni 166 71, Athens
Greece

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