It is difficult to decide which model to use to represent the price of copper in the projection of cash flows in capital budgeting analysis. In order to aid this decision, the following paper compares the methodologies most commonly used to detect random walk or mean reversion in a financial...

The objective of this paper is to value as a Real Option the License of a copper mine in the exploration stage. We conceive the License of a copper mine, as the value of a call option that gives us the right to invest in the next stage. The underlying asset is the Net Present Value (NPV) of the...

The present paper values a Wind Farm investment project as a Compound Real Option. By combining the different uncertainties, we evaluate the volatility of the project. The value of the project is calculated using binomial lattices including Market and Private Risks

Due to an assignment, received from a Chilean mining company, to value a copper mine with an estimated life span of several decades, we implemented a model of copper prices using mean reversion with Gaussian Poisson exponential jumps. The parameters of the model are extracted from the copper...

Financial innovation by means of Fintech firms is one of the more disruptive business model innovations from the latest years. Specifically, in the financial advisor sector, worldwide assets under management of artificial intelligence (AI)-based investment firms, or robo-advisors, currently...