Sødal, Sigbjørn; Koekebakker, Steen; Aadland, Roar - In: Review of Financial Economics 17 (2008) 3, pp. 183-203
This paper derives a real options model of flexibility and applies it to shipping, valuing the option to switch between the dry bulk market and wet bulk market for a combination carrier, a ship type that is capable of operating in both markets but that has fallen out of favor due to high price...