Reports on a survey which asked 82 experienced managers from various functions, business levels, and industries to value case studies which were in effect real options on growth. Compares these empirical valuations with theoretical values derived from a specific real options model (European...

For simple problems (only) in stochastic storage, analytic solutions are available,and although simulation is available for more difficult problems, in many casesthis is impractically slow. A new system of partial dierential equations (PDEs),derived via techniques used to value options in nance,...