The qualitative changes in surroundings for companies operation are calling for necessity of assertion new tools and method, which will help to increase the quality of decision making and firm evaluation. To these tools belong scenarios and Monte Carlo simulation. The aim of the article is to...

The article reminds of the world of futures contracts closed between subjects in the Austrian-Hungarian economic space in the period of ca. 1986-1914; an approach to the pricing of option contracts more than 100 years ago is elucidated. The form of a phenomenon of that time that will be called...

In general, there exist many ways to detect the fair value of financial derivatives. However, each of them is suitable for different purposes. For example, when the payoff function is not very simple or the underlying process is too complex, the approach of Monte Carlo simulation can be useful....

The dramatically growing disproportion between the value of corporate assets and market valuation has resulted in a well-researched schism between strategic management and financial theory. Options theory provides a potent tool to resolve this issue. We propose a model which is consistent with...

The power-generation industry offers numerous opportunities to apply real options. This paper uses current empirical market data to estimate the value of flexibility in the Czech energy sector, which can serve to compare available technologies, and support various investment decisions. The model...

Investment decision making is very important for firm growth. The classical quantitative methods (NPV, IRR…) don´t involve value of the firm option of flexible reaction to continuously changing conditions and take advantage of them. This deficiency eliminates the using of the real options...

This paper addresses the issue of project standby capacity optimization for capital budgeting. A detailed analysis and case study show that this is a particular real-option based situation, which solicits the use of statistical simulation. The method can be recommended as a useful heuristic for...

Investments projects value has a significant influence on firm value. There are a lot of methods for more precious evaluation of project value. The classic methods based on NPV have their origin in financial plan and the assumption of its precious implementation. They can not evaluate the...

Real options as a right to future decision-making based on additional information from outside a company can be found everywhere, every company has the flexibility, but its value depends on volatility. It order to utilize it some selection is necessary as working with real options may bring more...

The study presents a current approach to investments evaluation based on the real option theory. Each investment can be materialized through different possibilities, described as real options. It is possible to evaluate the price of real option by utilization of the described model. The real...