{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

08 Fin 301 Options Ulearn - Options Options Options...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
1 Options 2 Options, Options Everywhere All risky investments have embedded options Managers have the option to: Cut back or abandon investments that go sour Expand investments that turn out well 3 Options and Volatility (i.e. Risk) The more volatile the investment, the more valuable the option Take advantage of favorable outcomes Walk away from unfavorable ones To understand the value of options in capital investment decisions, we must first examine standard financial options
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon