Real options have been growing in popularity in recent years, and this has been accompanied by improvements in their modelling and valuation. Real options enable companies or managers to value projects more accurately by incorporating managerial flexibilities into the valuation model. This is in...

The Illustrious House of Ramires is the story of a Portuguese nobleman, without an heir or funds to maintain his estate, but with the prospects of marriage, developing his estate or writing the history of his illustrious family or an alternative career, including politics. These alternatives are...

This study evaluates two one‐factor, two two‐factor, and two three‐factor implied volatility functions in the HJM class, with the use of eurodollar futures options across both strike prices and maturities. The primary contributions of this article are (a) to propose and test three implied...

This study investigates the structure of the implied volatility smile, using the prices of equity options traded on the LIFFE. First, the slope of the implied volatility curve is significantly negative for both individual stocks and index options, and the slope is less negative for longer‐term...

Purpose – The purpose of this paper is to illustrate the use of a multi‐factor competitive real option model. Design/methodology/approach – The model is described, context of Google‐Yahoo! is developed, market share and other parameter values are estimated, sensitivities and alternative...

The national objectives of forward exchange controls are to restrain speculation in foreign exchange, to limit international capital flows and to affect the forward exchange rates. Restrictions on forward transactions are economic welfare costs for enterprises and banks, which are analysed in...