Purpose – The “raise your rate” (RYR) certificate of deposit (CD) allows investors to raise the rate on their CD to the current market rate over the life of the CD. The purpose of this paper is to present a binomial option pricing model to value this option to raise the rate. The model...

Purpose The purpose of this paper is to examine corporate finance practices in the frontier market of Morocco and compare the practices used by Moroccan companies to those in other countries. It focuses primarily on capital budgeting and real options. The study also examines whether corporate...

Purpose – This paper aims to demonstrate the practical application of real options analysis to the evaluation of multistage projects, using an example involving a commercial real estate development. Design/methodology/approach – The approach demonstrated builds on static discounted cash flow...

Purpose – The purpose of this paper is to develop a simple model illustrating the benefits of operating a diverse fleet of aircraft. Design/methodology/approach – The paper is theoretical. It describes how real options are beneficial to the firm in both capital budgeting and risk management....

Purpose – This paper aims to develop and test a real-options model investigating the antecedents predicting the types of options exercise (i.e. growth, delay and exit options) by multinational enterprises (MNEs) after their initial foreign direct investment (FDI) announcements. Firm-,...

Real options methodology has long been proposed as an approach to making business decisions, and the field of engineering is no exception. This book presents and synthesizes the body of knowledge in the area of real options for engineering systems. It also includes step-by-step computations of...

This book, based on lectures on natural and environmental resource economics, offers a nontechnical exposition of the modern theory of sustainability in the presence of resource scarcity. It applies an alternative take on environmental economics, focusing on the economics of the natural...