Real Options Analysis: Tools and Techniques for Valuing Strategic Investment and Decisions, 2nd Edition

by Johnathan Mun

"Mun demystifies real options analysis and delivers a powerful, pragmatic guide for decision-makers and practitioners alike. Finally, there is a book that equips professionals to easily recognize, value, and seize real options in the world around them."
--Jim Schreckengast, Senior VP, R&D Strategy, Gemplus International SA, France Completely revised and updated to meet the challenges of today's dynamic business environment, Real Options Analysis, Second Edition offers you a fresh look at evaluating capital investment strategies by taking the strategic decision-making process into consideration. This comprehensive guide provides both a qualitative and quantitative description of real options; the methods used in solving real options; why and when they are used; and the applicability of these methods in decision making.

Genres: Finance

704 pages, Hardcover

First published September 20, 2002

Reviews

[May Ling]

I did not realize when I first got this book that this book was about corporate use of options. However, that is not such a bad place to ground options theory. Munn is obviously keen about his software and some of this needs to be taken with a grain of salt, since, most of this can be built in house with a bit of effort.

That said, it is a great book for those that are interested in options within both a corporate and financial sense. The book does a decent job going through binomial trees and black scholes. I also like Appendix 9A which lists out clearly all the different variations on option strategies.

It speeds through the greeks, but it's helpful to see the math on all of them laid out as in Appendix 7E.

[Yijun · Rating 1 out of 5]

It is a disappointing reading and I eventually gave up. If you have some mathematics background and want to purchase and use the author's softwares for fun, the book is a good guidance and textbook. That's it.

I expected something which can explain to business people how to calculate the value and consider it with the value from traditional valuation methodologies. Most examples are high level, qualitative and back looking (justify the result using real option)

Frankly it's not an issue of this book. It's an issue of the whole concept of real option which is still mostly in the textbook and seldom used by real business and financial world quantitatively. It's no problem for the MBA graduated CEOs to accept the concept and incorporate in the business development and strategy making process, but how comfortable are they to actually rely on and trust the numbers they are presented?

[Svitlana Kerakova]

this book inspirated me for my MA thesis