We model investor heterogeneity using different required returns on an investment and evaluate the impact on the valuation of an investment. By assuming no disagreement on the cash flows, we emphasize how risk preferences in particular, but also the costs of capital, influence a subjective...

This paper resolves the conceptual ambiguity of real option value and derives a model using risk-adjusted discount rates that can be applied to value the option to invest in a project. The approach adopts stochastic revenue and costs which provide a general solution with the added virtue of...

We model investment opportunities with a single source of uncertainty, i.e. the market price of the investment. Investment cost can be predetermined or perfectly correlated with the market price. The common paradigm for risk-neutral real-option pricing is a special case en- compassed within our...

As Web 3 developments expand to virtual reality metaverses, personal profile (PFP) non-fungible tokens are emerging as the digital profile of choice. Many of these collections plan for images to be made into 3D avatars that function in virtual gaming and/or business environments. At the time of...

We introduce a general decision tree framework to value an option to invest/divest in a project, focusing on the model risk inherent in the assumptions made by standard real option valuation methods. We examine how real option values depend on the dynamics of project value and investment costs,...

A decentralized exchange (DEX) records every transaction on a blockchain, so it is much slower than a centralised exchange (CEX) which is only linked to a blockchain via a wallet, so no trades are recorded directly on the chain. While all CEXs use a traditional limit order book, most DEXs use a...