Hernández del Valle, Adrián; García, Martínez; … - In: El Trimestre Económico LXXIV (2) (2007) 294, pp. 329-348
We build a Conditional Real Options model VORC which allows for cashflows to be probabilistic and contingent on the average behavior of an external variable; and we apply our model to the crude oil market where the inflows on an investment project are contingent on the state of the base -the...