When is there a real option embedded in a decision or an asset? The following conditions apply:

* There has to be a ''clearly defined underlying asset'' whose ''value changes over time'' in unpredictable ways.
* The payoffs on this asset (real option) have to be contingent on an ''specified event occurring within a finite period''
bag
finance_public
created
Fri, 13 Jan 2012 17:55:32 GMT
creator
dirkjan
modified
Fri, 13 Jan 2012 17:55:32 GMT
modifier
dirkjan
tags
M13
Real Options
creator
dirkjan