62 Pages Posted: 16 May 2007 Last revised: 31 Jul 2012
Date Written: October 20, 2003
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.
Notes: Downloadable document is in Spanish.
Keywords: Options, real options, Black-Scholes model, NPV, Net Present Value
JEL Classification: G31
Suggested Citation: Suggested Citation
L. Dumrauf, Guillermo and Velez-Pareja, Ignacio, Consideración de La Flexibilidad en El Análisis (Opciones Reales Introducing Flexibility in the Analysis: Real Options) (October 20, 2003). Available at SSRN: https://ssrn.com/abstract=986980 or http://dx.doi.org/10.2139/ssrn.986980