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Thus, the expected continuation value is (2 theta).
In real options, an option is exercised when its exercise value is greater than continuation value.
From Eq. (10), the problem boils down to how to find the continuation value in order to apply Eq. (9).
In the following, we look how the results change when the continuation value is the insolvency administrator's private information and, thus, not contractible.
Moreover, the insolvency administrator's preferences represented by u and r have to be observable and a verifiable and unbiased estimator of the continuation value must be available.
The idea of the Least-Squares Monte Carlo Method is to approximate the continuation value by using least-squares regression at every moment in which it is possible to exercise the option.
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While continuation values are always addresses, core values may be non-address or address.
Due to our assumptions, liquidation values are higher for small (theta) and continuation values for large (theta).
For learning experiences, we also introduce a novel behavioral measure of engagement alongside participant self-reports by eliciting continuation values with diminishing compensation.
This recognition interpretation, which is based on yet another type-token relation, is coded by using an address as the core value of the non-initial proplets, pointing at the proplet representing the initial appearance of the referent: The different prn values indicate that each member proplet is part of a different proposition, allowing different continuation values.
In a continuation, the value accounts for (2theta + varepsilon) with (E varepsilon ) = 0), (text {Var} varepsilon ) = sigma ^2) and (text {Cov}(theta, varepsilon ) = 0).
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