Trinomial tree model of the real options approach used in mining investment price forecast and analysis

2013 ◽  
Vol 19 (4) ◽  
pp. 573-577 ◽  
Author(s):  
Qing-Hua Gu ◽  
Qiong Wu ◽  
Cai-Wu Lu
Keyword(s):  
Real Options ◽  
Tree Model ◽  
The Real ◽  
Price Forecast ◽  
Real Options Approach ◽  
Mining Investment ◽  
Trinomial Tree ◽  
Trinomial Tree Model

Creating comprehensive leadership pipelines: Applying the real options approach to organizational leadership development

2019 ◽  
Vol 29 (3) ◽  
pp. 305-315 ◽  
Author(s):  
Jennifer A. Griffith ◽  
John E. Baur ◽  
M. Ronald Buckley
Keyword(s):  
Leadership Development ◽  
Real Options ◽  
Organizational Leadership ◽  
The Real ◽  
Real Options Approach

Investment decisions in hog finishing: an application of the real options approach

2005 ◽  
Vol 32 (1) ◽  
pp. 47-60 ◽  
Author(s):  
Martin Odening ◽  
Oliver Mußhoff ◽  
Alfons Balmann
Keyword(s):  
Real Options ◽  
Investment Decisions ◽  
The Real ◽  
Real Options Approach

Extending the real options approach by including information options

2014 ◽  
pp. 53-93
Author(s):  
Andrew H. Chen ◽  
James A. Conover ◽  
John W. Kensinger
Keyword(s):  
Real Options ◽  
The Real ◽  
Real Options Approach

Project Management Under Risk: Using the Real Options Approach to Evaluate Flexibility in R…D

2001 ◽  
Vol 47 (1) ◽  
pp. 85-101 ◽  
Author(s):  
Arnd Huchzermeier ◽  
Christoph H. Loch
Keyword(s):  
Project Management ◽  
Real Options ◽  
The Real ◽  
Real Options Approach

scholarly journals Diesel or Electric Jeepney? A Case Study of Transport Investment in the Philippines Using the Real Options Approach

2019 ◽  
Vol 10 (3) ◽  
pp. 51 ◽  
Author(s):  
Casper Boongaling Agaton ◽  
Charmaine Samala Guno ◽  
Resy Ordona Villanueva ◽  
Riza Ordona Villanueva
Keyword(s):  
Real Options ◽  
Traffic Congestion ◽  
Business Environment ◽  
The Philippines ◽  
Public Utility ◽  
Optimal Decision ◽  
Decision Strategy ◽  
The Real ◽  
Real Options Approach ◽  
The Government

The Philippines is moving towards a more sustainable public transport system by introducing a public utility vehicle (PUV) modernization program with electric jeepneys (e-jeepneys) and modernized diesel jeepneys. Despite its potential to address problems related to air pollution, traffic congestion, dependence on fuel imports, and carbon emissions, transport groups show resistance to the adoption of the government program due to costs and investment risk issues. This study aims to guide transport operators in making investment decisions between the modernized diesel jeepney and the e-jeepney fleet. Applying the real options approach (ROA), this research evaluates option values and optimal investment strategies under uncertainties in diesel prices, jeepney base fare price, electricity prices, and government subsidy. The optimization results reveal a better opportunity to invest in the e-jeepney fleet in all scenarios analyzed. Results also show a more optimal decision strategy to invest in the e-jeepney immediately in the current business environment, as delaying or postponing investment may incur opportunity losses. To make the adoption of the e-jeepney more attractive to transport operators, this study further suggests government actions to increase the amount of subsidy and base fares, establish public charging stations, and continue efforts to rely on cleaner, cheaper, and renewable sources of electricity.

Valuing Growth Strategy Management by Hotel Chains Based on the Real Options Approach

2008 ◽  
Vol 14 (3) ◽  
pp. 511-526 ◽  
Author(s):  
Onofre Martorell Cunill ◽  
Carles Mulet Forteza ◽  
Micaela Rosselló Miralles
Keyword(s):  
Real Options ◽  
Strategy Management ◽  
Growth Strategy ◽  
The Real ◽  
Real Options Approach ◽  
Hotel Chains

Business opportunity assessment in Slovene organic spelt processing: application of real options model

2011 ◽  
Vol 26 (3) ◽  
pp. 179-184 ◽  
Author(s):  
Karmen Pažek ◽  
Črtomir Rozman
Keyword(s):  
Decision Making ◽  
Real Options ◽  
Net Present Value ◽  
Sunk Costs ◽  
Organic Farms ◽  
Processing Application ◽  
The Real ◽  
Business Opportunity ◽  
Real Options Approach ◽  
Flour Production

AbstractDecision making in organic farming is related to risk and uncertainty, and options must be evaluated in the decision-making process. This paper presents the methodology of an integrated deterministic simulation system (KARSIM 1.0) application for decision-making support on organic farms in northeastern Slovenia. An emphasis to modify the net present value (NPVt) criterion by incorporating the real options approach was made. Its application is shown in organic spelt (Triticum aestivum ssp. spelta McKey) production and processing using two real options approaches, the Black–Scholes and binomial models. The NPVt indicates that the decision to process spelt for animal fodder is financially unfeasible, while the real options approach differentiates the results by organic spelt grain and flour production for human nutrition. It may be concluded that the real options approach can be useful when assessing projects with uncertainty, sunk costs and irreversibility, and it can provide for examining agricultural investment decisions.

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