Real Options Analysis: Tools and Techniques for Valuing Strategic Investment and Decisions

By Johnathan Mun

Book Overview

"Mun demystifies real options analysis and delivers a powerful, pragmatic guide for decision-makers and practitioners alike. Finally, there is a book that equips professionals to easily recognize, value, and seize real options in the world around them." --Jim Schreckengast, Senior VP, R&D Strategy, Gemplus International SA, France Completely revised and updated to meet the challenges of today's dynamic business environment, Real Options Analysis, Second Edition offers you a fresh look at evaluating capital investment strategies by taking the strategic decision-making process into consideration. This comprehensive guide provides both a qualitative and quantitative description of real options; the methods used in solving real options; why and when they are used; and the applicability of these methods in decision making.

• Format: Hardcover
• Language: English
• ISBN: 0471747483
• ISBN13: 9780471747482
• Release Date: November 2005
• Publisher: John Wiley & Sons
• Length: 667 Pages
• Weight: 2.15 lbs.
• Dimensions: 1.9" x 6.2" x 9.1"

Customer Reviews

Essential Reading

An excellent text. Discusses such advanced analytical techniques as Monte Carlo analysis and discounted cash flow in highly readable terms while providing a gamut of valuable information about this growing field. Congratulations, Dr. Mun!

A Must Read Book

The book leads the field in real options analytics and is a must-read for anyone interested in performing such analyses. Dr. Mun has made a formidable subject crystal clear and exponentially easy for senior management to understand. Monte Carlo simulation and Real Options software alone is worth the book price many times over. Excellent job!

Real Options Analysis Review

"Dr. Mun has converted his tacit financial knowledge into a digestible user-friendly book. He effectively leads the reader on a solid path starting from Discounted Cash Flow, progressing through Monte Carlo analysis and evolving to Real Options to get even closer to the target of achieving confident corporate decisions. His ability to clearly explain the relationships of popular competing analysis methods will make this a must have reference book for today's decision makers." Kenneth English Director of Research and Development Emerging Technology.

Real Options in Action

This is an excellent text on Real Options Analysis. There is a definitive very well maintained balance between theory and practice. Dr. Mun will take you through a random walk, which is so natural and so powerfully pragmatic you will appreciate by the time you'll reach the final pages of the book. The powerful intuition Dr. Mun develops behind stochastic calculus and Ito's lemma makes it accessible and useful to the businessman who has to learn how to mitigate downside risks while optimizing growth opportunities in an uncertain economy. The book in itself is a real option - The mathematics is nicely explained only when needed for clarity of the subject. The abundant amount of reference is there for you to find out if interested. It is up to you to decide when you wish to exercise your options. If you can identify your real options, Dr. Mun will show you how to value those complex opportunities.