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REAL OPTION TECHNIQUE

This paper presents an introduction to real options, detailing their significance in finance and investment decision-making. It explores the fundamental concepts of financial options, including call and put options, as well as the critical terms such as strike price and expiration date. The document contrasts American and European options and their pricing dynamics compared to underlying assets. Real-world case studies illustrate the application of these concepts. For full access to the document, please contact us at www.mb.ipb.ac.id.

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REAL OPTION TECHNIQUE

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  1. REAL OPTION TECHNIQUE PROF. ROY SEMBEL September 2006

  2. INTRODUCTION TO REAL OPTIONS FINANCIAL OPTIONS OPTIONS CASE STUDIES

  3. FINANCIAL OPTIONS CONTRACT THAT GIVES ITS HOLDER A RIGHT TO BUY (CALL) OR SELL (PUT) A CERTAIN AMOUNT OF A CERTAIN UNDERLYING ASSET WITH A CERTAIN PREDETERMINED PRICE (STRIKE/EXERCISE PRICE) AT A CERTAIN TIME IN THE FUTURE AMERICAN VS EUROPEAN OPTIONS PRICE (PREMIUM) OF OPTIONS VS PRICE OF UNDERLYING ASSET

  4. Option Terminology • Call option: An option to buya specified number of shares of a security within some future period. • Put option: An option to sell a specified number of shares of a security within some future period. • Exercise (or strike) price: The price stated in the option contract at which the security can be bought or sold.

  5. Untukmelihat file lengkapnyasilahkanmenghubungikamidiwww.mb.ipb.ac.id

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