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Real options capture the value of managerial flexibility to adapt decisions in response to unexpected market developments.

Companies create shareholder value by identifying, managing and exercising real options associated with their investment portfolio.

The real options method applies financial options theory to quantify the value of management flexibility in a world of uncertainty. If used as a conceptual tool, it allows management to characterize and communicate the strategic value of an investment project.

Traditional methods (e.g. net present value) fail to accurately capture the economic value of investments in an environment of widespread uncertainty and rapid change.

The real options method represents the new state-of-the-art technique for the valuation and management of strategic investments.

The real option method enables corporate decision-makers to leverage uncertainty and limit downside risk.

This site is maintained by Ulrich Hommel and the Chair of Investment and Risk Management of the European Business School (Oestrich- Winkel) as a free service to the scientific and management community. If you have any information on the real options method that you wish to make available to the public via this web site, please contact us.

CONTENT:

basic introduction to the real option approach as an alternative valuation method

• summary of the real options literature
  book recommendations
  articles on (real) options
  case studies
  pdf files of real option papers
• information on software products for option valuation
• information on past and future conferences with a real options focus
• listing of German researchers with a real options focus
• listing of consultancy companies with a real options practice
• links to international real options websites
• Site language is English to allow the international real options community to access these pages.

2nd GERMAN REAL OPTIONS SYMPOSIUM

Schloss Reinhartshausen, Erbach

MAY 31, 2001

Pre-Symposium Workshop on May 30, 2001

Get conference details at real-options.de!

Real Options – Bringing Out the Value of Your Company!