Fonte, Fernando A. C. C.; Fontes, Dalila B. M. M. - Faculdade de Economia, Universidade do Porto - 2007
In this work, we address an investment problem where the investment can either be made immediately or postponed to a later time, in the hope that market conditions become more favourable. In our case, uncertainty is introduced through market price. When the investment is undertaken, a fixed sunk...