Realne opcije
Real Options

Summary/Abstract: In the real world every business decision is coupled with uncertainty about the future that affects the present value of the projects in consideration. Thus, before making any investment decisions, managers use various approaches to determine whether the investment should be undertaken or not. Traditional approaches for valuing these investment opportunities do not take into account management flexibility to revise its decisions in the future, as well as the interdependence of the project with future investments. Therefore, as a result, real option approach has been introduced. The Real Options Approach attempts to value projects by considering the value of being able to decide among several strategic options. The fact that managers can decide which action to take at different points during the life of the project has proven to be quite valuable. Namely, real-life projects are often complex in that they involve a collection of multiple real options whose values may interact. Hence, the concept of compound options is at the heart of business since there are two possible outcomes for virtually every business idea. The objective of this paper is to apply a real option methodology for the valuation of the compound option. The paper highlights the main concept of real options, its common types, and the numerical example of the compound real options.

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