Sentence examples for option approaches from inspiring English sources

You are simply buying time value, which decreases as an option approaches expiration.

To capture the value of managerial flexibility, a real option approach is implemented.

This paper presents a real option approach to the valuation of modular projects, focusing on the value of splitting.

Wolbert-Haverkamp and Mußhoff [121] introduced the real option approach (ROA) as alternative to the net present value (NPV) calculation as classical investment theory (used in this study).

There are thus numerous decisions and investment opportunities, not only within transportation, that could be valued from a consumer perspective with the help of a real option approach.

It is argued that these transactions have option-like features, and the paper uses a game-theoretic option approach to model the value of such claims.

Two methodologies are used to evaluate the simulation of engineering techniques: (i) the real option approach; and (ii) the discounted cash flow (DCF) method.

Using a compound exchange option approach, we characterise the resulting agency costs of debt, derive the "price" of these costs and analyse their dynamics.

Since oil recovery includes many managerial choices, we argue that the real option approach is more appropriate than the DCF method.

For this, the value of a carbon capture and storage project are calculated with the standard net present value (NPV) and with the least-squares Monte Carlo method, which is a real option approach (ROA).

We conclude that by appropriately combining different production techniques, the value of oil reserves can increase under the real option approach and can be higher than the value assessed under the DCF method.