The Real Option Pricing Model For Risky Investment Project
Qu Kun · Journal of Dalian Jiaotong University · 2008
A new model named real option pricing model was proposed to evaluate the risky investment project.The risky investment project is seen as a series of European options,based on the Black-Scholes option pricing model,the real option value can be obtained.Computation result of a sample data demonstrates that the default of the traditional NPV method because of ignoring the real option value.