Real Options and Their Applications: Fudan University · Finance Series

Author: Yang Chunpeng
Publisher:
Publish Date: 2003-11-01
Features: Real options are flexible investment strategies that managers possess when making decisions about their physical assets. The book is divided into three parts and fourteen chapters, studying and introducing the types, pricing, and specific applications of real options.
Part I primarily elaborates on the basic concepts of real options and some fundamental concepts, pricing methods, and pricing principles of financial options. It introduces two highly important pricing models for financial options: the binomial option pricing model and the Black-Scholes option pricing model.
Part II primarily discusses the differences between real options and financial options, as well as the classification and pricing models of real options.
Part III primarily focuses on the applications of real options. First, it explains the application process of using real options to study specific problems and the basic framework of real options. Second, it lists the applications of real options in specific fields. Finally, it examines the implementation of "debt-to-equity conversion" using real options in the reform of state-owned enterprises in China and the application of real options in the valuation of patent rights. It also introduces the future main research directions of real options.
This book is suitable for senior students in universities and colleges majoring in finance, economics, management, and other related fields, as well as readers interested in futures and real options.