scholarly journals Um Modelo de Opções Reais com Investimento Incerto e Seqüencial e com Tempo para Construir

2005 ◽  
Vol 3 (2) ◽  
pp. 141 ◽  
Author(s):  
Guilherme B. Martins ◽  
Marcos Eugênio Da Silva
Keyword(s):  
Differential Equation ◽  
Real Option ◽  
Investment Decision ◽  
Maximization Problem ◽  
Investment Opportunity ◽  
Rule Based ◽  
Construction Period ◽  
Time To Build ◽  
Option Model ◽  
A Company

This article develops a real option model with uncertain and sequential investment and with time to build. The model includes options to entry and to exit the activity and addresses the maximization problem of a company in view of the investment opportunity. The differential equation of the asset is obtained by using dynamic programming and risk neutral evaluation. Particularly, for the construction period, the differential equation is partial and elliptical, which demands the use of numeric methods. The main results of the article are that (i) with uncertain and sequential investment and with time to build, the waiting value, which creates a gap between the investment decision rule based on NPV and that based on a real option model, may not very significant and (ii) the increase in uncertainty may anticipate the decision to investment.

scholarly journals Environmental protection, public finance requirements and the timing of emission reductions

2012 ◽  
Vol 17 (6) ◽  
pp. 715-739 ◽  
Author(s):  
Elettra Agliardi ◽  
Luigi Sereno
Keyword(s):  
Social Welfare ◽  
Real Option ◽  
Profit Maximization ◽  
Policy Instrument ◽  
Critical Threshold ◽  
Maximization Problem ◽  
Policy Options ◽  
Emission Standards ◽  
Option Model ◽  
Pollution Emissions

AbstractThe effects of four environmental policy options for the reduction of pollution emissions, i.e. taxes, emission standards, auctioned permits and freely allocated permits, are analyzed. The setup is a real option model where the amount of emissions is determined by solving the firm's profit maximization problem under each policy instrument. The regulator solves an optimal stopping problem in order to find the critical threshold for policy adoptions taking into account revenues from taxes and auctioned permits and government spending. In this framework we find the ranking of the alternative policy options in terms of their adoption lag and social welfare. We show that when the output demand is elastic, emission standards are preferred to freely allocated permits. Taxes and auctioned permits are always equivalent in terms of their adoption lag and social welfare, and also equivalent to emission standards when the regulator redistributes revenues.

A Real Option Model Suitable for Real Estate Project Investment Decision

2011 ◽  
Vol 225-226 ◽  
pp. 234-238
Author(s):  
Xiao Ling Ke ◽  
Feng Qin Diao ◽  
Ke Jun Zhu
Keyword(s):  
Real Estate ◽  
Real Option ◽  
Investment Decision ◽  
House Price ◽  
High Sensitivity ◽  
Project Investment ◽  
Real Estate Investment ◽  
Real Estate Project ◽  
Option Model ◽  
Flexible Management

Real estate investment is distinctively different from others with its high input capital, long period of recycling, huge fluctuation of house price and high sensitivity to other factors. The traditional decision method could not make a rational judgment of the flexible management value in real estate project investment. With regards to the policy and market features of real estate investment in China, a real option model suitable for real estate project investment decision under high uncertainty in China is constructed. At last, a case of a real estate company is studied to test the real estate investment decision model.

scholarly journals Optimization of Tourism Real Estate Development Project Based on Option Premium Model

2021 ◽  
Vol 2021 ◽  
pp. 1-8
Author(s):  
Donglei Ying
Keyword(s):  
Decision Making ◽  
Real Estate ◽  
Real Option ◽  
Investment Decision ◽  
Case Analysis ◽  
Distribution Model ◽  
The Real ◽  
Investment Decision Making ◽  
Real Estate Project ◽  
Option Model

Compared with that of traditional housing real estate, the development of tourism real estate is time-consuming, complex, and irreversible. It is hard to guide investment decision-making on tourism real estate with the conventional discount cash flow (DCF) method. This paper aims to demonstrate that the real option method can improve and optimize the investment decision-making on tourism real estate. Through case analysis, the real option model, i.e., the classic American real option model, and binary tree value distribution model were adopted to analyze the factors affecting the real option of tourism real estate, optimize the development sequence of tourism real estate project, and demonstrate the phased development value of tourism real state, thereby enhancing the development value of tourism real estate projects. The case analysis proves that tourism real estate investment is fully consistent with real option in the uncertain spatiotemporal attributes: uncertainty, irreversibility, and timeliness. Therefore, tourism real estate project carries obvious features of real option. The decision-making by the real option model is much more scientific and superior than that by the conventional DCF method. Since the application of real option theory has been emphasizing housing real estate over tourism real estate, the research results enrich the theory on real option-based investment decision-making for real estate and expand the application scope of real option.

Research Review on the Value of Coalmine Safety Investment Based on Real Option

2014 ◽  
Vol 522-524 ◽  
pp. 1447-1451
Author(s):  
Xue Ping Zhao ◽  
Shui Cheng Tian
Keyword(s):  
Real Option ◽  
Investment Decision ◽  
Research Direction ◽  
Mine Safety ◽  
Research Review ◽  
Venture Investment ◽  
Coal Mine Safety ◽  
Option Model ◽  
Safety Investments ◽  
Safety Investment

The paper focuses on coalmine safety investment, studies and summarizes theories of safety investment and real option. Based on real option applications on pricing, venture investment, investment decision, estimation and valuation, investment assessment and safety investment, it analyzes the problems in researches on coal mine safety investments and advantages of constructing pricing model that combined real option with fuzzy mathematics theory, and proposes research direction of incorporating fuzzy numbers into real option model.

COMPUTING COMPETENCIES VALUE THROUGH A FUZZY REAL OPTION MODEL

2004 ◽  
Vol 09 (01) ◽  
Author(s):  
Lorella Cannavacciuolo ◽  
Luigi Iervolino ◽  
Luca Iandoli ◽  
Giuseppe Zollo
Keyword(s):  
Real Option ◽  
Option Model

Airfare price insurance: a real option model

2011 ◽  
Vol 12 (1) ◽  
pp. 5-14 ◽  
Author(s):  
Adishwar K. Jain ◽  
Raymond A.K. Cox
Keyword(s):  
Real Option ◽  
Option Model ◽  
Price Insurance

scholarly journals INVESTMENT DECISION, MARKET CAPITALIZATION, AND COMPANY VALUE

2020 ◽  
Vol 8 (12) ◽  
pp. 696-704
Author(s):  
Hais Dama ◽  
◽  
Meriyana Franssisca Dungga ◽  
Firdza Salma Hasiru ◽  
◽  
...  
Keyword(s):  
Stock Price ◽  
Regression Coefficient ◽  
Stock Exchange ◽  
Investment Decision ◽  
Well Being ◽  
Market Capitalization ◽  
Company Value ◽  
Quantitative Descriptive ◽  
A Company ◽  
Descriptive Method

A company that canincrease its value will also be able to improve the well-being of the owner or the shareholders. To a company that issues stocks in the capital market, the stock price in the stock exchange is the indicator of a companys value. Good company value is identified from the companys performance it is also identified from the stable or increasing stock price.This present study analyzed the influence of investment decision and market capitalization on company value. It involved companies listed in the Jakarta Islamic Index (JII), and aimed to formulate a matter of consideration for investors. A quantitative descriptive method was employed to investigate the correlation and influence between variables. The result showed that: (1) investment decisionpartially influenced company value with regression coefficient value of 1.721 and significance value of 0.000 (2) market capitalization partially influenced company value with regression coefficient value of -0.163 and significance value of 0.041 (3) investment decision and market capitalization simultaneously influenced company value of companies listed in the JII with f-count value of 330.698 and significance value of 0.000. Moreover, the adjusted R2 test acquired value of 0.924. The number indicated that company value was influenced by investment decisionand market capitalization by 92.4 percent, while the rest 7.6 percent was due to other variables.

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