What is it about?
This short article explains the ideas behind real options for the everyday reader. A good place to start to learn about the concept.
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Why is it important?
Real options reasoning helps us understand a huge number of investments that are made without knowledge of what the payoff will be in a precise way. It shows us how to benefit from uncertainty and how to contain risk.
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This page is a summary of: Real Options, January 2015, Wiley,
DOI: 10.1002/9781118785317.weom030083.
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