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The Resource A pragmatic guide to real options, Tom Arnold, (electronic book)

A pragmatic guide to real options, Tom Arnold, (electronic book)

Label
A pragmatic guide to real options
Title
A pragmatic guide to real options
Statement of responsibility
Tom Arnold
Creator
Subject
Language
eng
Summary
  • Aimed at practitioners with no prior expertise in the subject, this book helps readers build basic real options models to aid in decision-making. Providing a pragmatic and informative approach, the authors introduce basic probability theories, before putting these theories into a real-world context.
  • "Tom Arnold uses unique elements of presentation to build a friendly step-by-step guide to understanding and modeling the basics of real options. He gives many fully-worked examples and much careful advice for corporate decision makers. His book is a pedagogical gem!" - Timothy Crack, Chaired Professor of Finance, Otago University, New Zealand "Tom Arnold's book introduces real options using a fresh approach that puts the concept of net present value center stage where it belongs. He takes the reader through the steps of valuing real options in meticulous detail, ideal for a reader new to the subject." - Graeme Guthrie, School of Economics and Finance, University of Wellington, New Zealand
Member of
Cataloging source
UK-WkNB
http://library.link/vocab/creatorName
Arnold, Tom
Illustrations
illustrations
Index
index present
Literary form
non fiction
http://library.link/vocab/subjectName
Real options (Finance)
Summary expansion
A Pragmatic Guide to Real Options fills the gap for an introductory guide to building intuition and realizing the benefits of real options models. The goal is to take the reader through the math and the logic of option pricing in a very deliberate manner and to demonstrate how option pricing techniques can then be applied to corporate decision-making. Author Tom Arnold demonstrates how NPV analysis is very static because it uses what appear to be very deterministic future cash flows. He engagingly introduces all mathematical and financial elements in a very clear manner and presents binomial trees for forecasting project cash flows. The cash flow binomial tree is then adapted to become an NPV-embedded binomial tree upon which real option analysis is performed. The real option analyses are performed using risk-adjusted pricing with certainty equivalence and risk-neutral pricing. The techniques introduced in the text retain much of the familiar NPV analysis, but within a more dynamic environment. Further, Arnold also helps readers visualize how possible future actions create more value for a project and what types of actions could be considered to generate more value
Label
A pragmatic guide to real options, Tom Arnold, (electronic book)
Instantiates
Publication
Bibliography note
Includes index
Contents
Table of Contents 1. How Net Present Value (NPV) is Implemented 2. Making Decisions Sequential 3. Option Terminology and an Introduction to Binomial Trees 4. Binomial Trees, Risk-Neutral Pricing, and American Style Options 5. Applying Real Option Analysis with NPV-Embedded Binomial Trees 6. Applying More Real Options Analysis into an NPV-Embedded Binomial Tree 7. Implementing an NPV-Embedded Binomial Tree from an NPV Analysis 8. Real Option Analysis and the Black-Scholes Model
Control code
9781137391162
Extent
xiv, 186 p.
Form of item
electronic
Governing access note
Users can print and/or download individual articles/chapters and other individual items from Palgrave Connect ebooks, limited to no more than one chapter per title per authorised user
Isbn
9781137391483
Other physical details
ill.
Specific material designation
unspecified
Type of computer file
PDF.
Label
A pragmatic guide to real options, Tom Arnold, (electronic book)
Publication
Bibliography note
Includes index
Contents
Table of Contents 1. How Net Present Value (NPV) is Implemented 2. Making Decisions Sequential 3. Option Terminology and an Introduction to Binomial Trees 4. Binomial Trees, Risk-Neutral Pricing, and American Style Options 5. Applying Real Option Analysis with NPV-Embedded Binomial Trees 6. Applying More Real Options Analysis into an NPV-Embedded Binomial Tree 7. Implementing an NPV-Embedded Binomial Tree from an NPV Analysis 8. Real Option Analysis and the Black-Scholes Model
Control code
9781137391162
Extent
xiv, 186 p.
Form of item
electronic
Governing access note
Users can print and/or download individual articles/chapters and other individual items from Palgrave Connect ebooks, limited to no more than one chapter per title per authorised user
Isbn
9781137391483
Other physical details
ill.
Specific material designation
unspecified
Type of computer file
PDF.

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