haku: @author Ekern, S. / yhteensä: 8
viite: 3 / 8
| Tekijä: | Ekern, S. |
| Otsikko: | An option pricing approach to evaluating petroleum projects |
| Lehti: | Energy Economics
1988 : APR, VOL. 10:2, p.91-99 |
| Asiasana: | PRICING PETROLEUM INDUSTRY VALUATION |
| Kieli: | eng |
| Tiivistelmä: | An option pricing approach is applied to capital budgeting decisions exemplified by evaluation of petroleum projects. The purpose is to show that concepts and methods from option pricing theory and the related contingent claims analysis may be quite useful additions to the analysts' tool kit for real investment projects. Compared to traditional discounted cash flow methods, the option framework relies more heavily on market-based input data and yields improved estimates of the expected cash flow elements. Conventional standard results obtained by traditional capital budgeting and decision tree approaches are refuted, as a traditionally calculated net present value is not necessary. |
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