Lee, Hyo-Chan; Park, Seyoung; Yoon, Jong Mun - In: Journal of derivatives and quantitative studies 29 (2021) 2, pp. 102-115
This study aims to generalize the following result of McDonald and Siegel (1986) on optimal investment: it is optimal for an investor to invest when project cash flows exceed a certain threshold. This study presents other results that refine or extend this one by integrating timing flexibility...