Real option valuation is a financial term that offer company’s financial situation. Real Options Valuation, also often named real options investigation applies option valuation approaches to capital budgeting selections. A real option is the correct but not the obligation, to take on certain business projects, such as deferring, leaving, expanding, staging, or contracting a investment capital investment project. For instance, the opportunity to get the expansion of any firm’s factory, or alternatively to sell the factory, is a real call or put option, respectively.
Real Options Valuation
