What Is The Real Value In Real Options?

David Wanetick

David Wanetick

IncreMental Advantage

Whether you realize it or not, you are a practitioner of real options analysis.Real options analysis is an attempt to quantify the value of future, ancillary opportunities that derive from undertaking a given course of action. These opportunities may arise from serendipitous discovery of something of value. For instance, while setting out to discover a medicine for cardiovascular disease Pfizer serendipitously discovered Viagra. Another manifestation of real options value is that undertaking one activity will put you on a path that will provide you with an entrée to pursue a series of similar activities. For example, Apple’s development of the iPod provided a platform for the development of iPhones and iPads.

Read the Full Article:

Full articles are available only to LESI Members. Please login to view the PDF of this Les Nouvelles Article.

Not an LESI member? Find out how to join your regional LES society and gain access to all that your LES society and LESI has to offer.