Makhankov, V. G. and AgueroGranados, M. A. (2010): Quantifying Flexibility Real Options Calculus.

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Abstract
We expose a real options theory as a tool for quantifying the value of the operating flexibility of real assets. Additionally, we have pointed out that this theory is an appropriated methodology for determining optimal operating policies, and provide an example of successful application of our approach to power industries, specifically to valuate the power plant of electricity. In particular by increasing the volatility of prices will eventually lead to higher assets values.
Item Type:  MPRA Paper 

Original Title:  Quantifying Flexibility Real Options Calculus 
Language:  English 
Keywords:  real options, BlackScholes Approach, Wiener processes, stochastic processes, Quantifying Flexibility, volatility 
Subjects:  C  Mathematical and Quantitative Methods > C0  General > C02  Mathematical Methods G  Financial Economics > G0  General > G00  General C  Mathematical and Quantitative Methods > C6  Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C60  General C  Mathematical and Quantitative Methods > C0  General > C01  Econometrics 
Item ID:  29795 
Depositing User:  Maximo Aguero 
Date Deposited:  28 Mar 2011 09:04 
Last Modified:  30 Sep 2019 17:15 
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URI:  https://mpra.ub.unimuenchen.de/id/eprint/29795 