Types of Real Option
The flexibility available to management – i.e. the actual “real options” – generically, will relate to project size, project timing, and the operation of the project once established. In all cases, any (non-recoverable) upfront expenditure related to this flexibility is the option premium. Real options are also commonly applied to stock valuation - see Business valuation: Option pricing approaches - as well as to various other "Applications" referenced below.
Read more about this topic: Real Options Valuation
Famous quotes containing the words types of, types, real and/or option:
“Our children evaluate themselves based on the opinions we have of them. When we use harsh words, biting comments, and a sarcastic tone of voice, we plant the seeds of self-doubt in their developing minds.... Children who receive a steady diet of these types of messages end up feeling powerless, inadequate, and unimportant. They start to believe that they are bad, and that they can never do enough.”
—Stephanie Martson (20th century)
“The rank and file have let their servants become their masters and dictators.... Provision should be made in all union constitutions for the recall of leaders. Big salaries should not be paid. Career hunters should be driven out, as well as leaders who use labor for political ends. These types are menaces to the advancement of labor.”
—Mother Jones (1830–1930)
“I’m not making light of prayers here, but of so-called school prayer, which bears as much resemblance to real spiritual experience as that freeze-dried astronaut food bears to a nice standing rib roast. From what I remember of praying in school, it was almost an insult to God, a rote exercise in moving your mouth while daydreaming or checking out the cutest boy in the seventh grade that was a far, far cry from soul-searching.”
—Anna Quindlen (b. 1952)
“A self-respecting nation is ready for anything, including war, except for a renunciation of its option to make war.”
—Simone Weil (1909–1943)