Search Results - subject:"Option to expand"

The option to expand a project: its assessment with the binomial options pricing model

Cruz Rambaud, Salvador; Sánchez Pérez, Ana María - In: Operations Research Perspectives 4 (2017), pp. 12-20

operational flexibility of the project. In this paper, real options, and more specifically the option to expand, are assumed to be … the real option to expand. Taking into account the analogy between real and financial options, the value of including an … option to expand is explored by using the binomial options pricing model. In this way, estimating the value of the option to …

Persistent link: https://www.econbiz.de/10011825944

The option to expand a project : its assessment with the binomial options pricing model

Cruz Rambaud, Salvador; Sánchez Pérez, Ana María - In: Operations research perspectives 4 (2017), pp. 12-20

Persistent link: https://www.econbiz.de/10011822838

Joint Ventures and the Option to Expand and Acquire

Kogut, Bruce - In: Management Science 37 (1991) 1, pp. 19-33

This article develops the perspective that joint ventures are created as real options to expand in response to future technological and market developments. The exercise of the option is accompanied by an acquisition of the venture. It is hypothesized that the timing of the acquisition should be...

Persistent link: https://www.econbiz.de/10009203731