Real Options: A Practitioner's Guide, Revised Edition, 1st Edition

  • Tom Copeland
  • Vladimir Antikarov
  • ISBN-10: 1587991861  |  ISBN-13: 9781587991868
  • 384 Pages
  • Previous Editions: 2001
  • © 2003 | Published



This revised edition of the highly successful book, Real Options, offers corporate decision-makers the ability to assess the profitability of their ventures and decide which avenue of expansion or investment to go down and, crucially, when to take that leap. The reader goes on a journey through real options, from the basics to more advanced topics such as options and game theory. It provides expert guidance on how to implement the theory to maximize investment opportunities by utilizing uncertainty as an asset and reducing downside risk.

Table of Contents

1.Getting Started 2.The Change Process 3.Net Present Value 4.Comparing Net Present Value, Decision Trees, and Real Options 5.Numerical Methods for Simple Options 6.Compound and Switching Options 7.Going from One Step per Time Period to Many 8.A Four-Step Process for Valuing Real Options 9.Estimating Volatility: Consolidated Approach 10.Keeping Uncertainties Separate 11.Case Examples 12.Final Thoughts Appendix A Appendix B Notes

Meet the Author

About the Author

Tom Copeland

Tom Copeland is Chief Corporate Finance Officer at Monitor Company in Cambridge, MA and a professor at MIT¿s Sloan School of Management. Previously, he was a partner and head of the corporate finance practice at McKinsey & Co, a member of the finance faculty at UCLA¿s Anderson School of Management and an adjunct full professor of finance at NYU¿s Stern School of Management.

Vladimir Antikarov

Vladimir Antikarov joined Monitor Group in 1992. He has extensive experience in the telecommunications services and equipment industries. With Tom Copeland, he has developed methodologies and led the building of software tools to apply real options in the management of R&D, product development, foreign investment analysis, investment in switching capacity and other applications. Vladimir has an M.B.A. from Boston University and is currently a doctoral student in Finance at Boston University. His undergraduate degree is from the University for National and Global Economy, Sophia, Bulgaria.