Publications
Publications
- September 1997 (Revised February 2000)
Exercises in Option Pricing and Real Option Analysis
By: Benjamin C. Esty
Abstract
Contains five problems, one each on basic option pricing, abandonment value, the value of waiting to invest, contingent claims analysis (equity as a call option), and strategic decision making in an option framework. The goal is for students to recognize option value and to understand how it relates to corporate applications using relatively simple numerical examples. The problems are designed to minimize the complexities inherent in real applications, which can be discussed in the context of case discussions that follow this problem set.
Keywords
Citation
Esty, Benjamin C. "Exercises in Option Pricing and Real Option Analysis." Harvard Business School Exercise 298-053, September 1997. (Revised February 2000.)
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