Skip to main content
padlock icon - secure page this page is secure

A Study on Estimating Investment Timing of Real Options

Buy Article:

$61.00 + tax (Refund Policy)

One of the most critical issues in real options analysis is determining the optimal timing of the irreversible investment during the life of the option. Research indicates that failing to exercise real options on time reduces the project's value much less than predicted. However, the question of whether real option holders exercise their options optimally has not been extensively researched. In this research, an early decision rule for real options is developed, and a simulation technique validates this rule. The result of the simulation indicates that the suggested decision rule gives higher profits than the traditional rule in most cases.
No Reference information available - sign in for access.
No Citation information available - sign in for access.
No Supplementary Data.
No Article Media
No Metrics

Document Type: Research Article

Affiliations: Auburn University, Auburn, Alabama, USA

Publication date: July 1, 2008

  • Access Key
  • Free content
  • Partial Free content
  • New content
  • Open access content
  • Partial Open access content
  • Subscribed content
  • Partial Subscribed content
  • Free trial content
Cookie Policy
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more