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A Stochastic Control Framework for Real Options in Strategic Evaluation

A Stochastic Control Framework for Real Options in Strategic Evaluation

Paperback

Investing & FinanceGeneral Mathematics

ISBN10: 146127401X
ISBN13: 9781461274018
Publisher: Springer Nature
Published: Oct 21 2011
Pages: 288
Weight: 0.90
Height: 0.60 Width: 6.14 Depth: 9.21
Language: English
The mathematical theory of finance, involves a stochastic framework in which the theory of real options can serve as a tool for practically oriented decision making in the face of uncertainty. This book examines a new framework for classifying real options from a management and a valuation perspective, giving the advantages and disadvantages of the approach. Impulse control theory and the theory of optimal stopping are used to construct arbitrarily complex real option models that can be solved numerically and yield optimal capital market strategies and values. Various examples demonstrate the potential of this framework.

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