Real Options Analysis Quotes

“Real options analysis assumes that the future is uncertain and that management has the right to make midcourse corrections when these uncertainties become resolved or risks become known; the analysis is usually done ahead of time and thus, ahead of such uncertainty and risks. Therefore, when these risks become known, the analysis should be revisited to incorporate the decisions made or revising any input assumptions. Sometimes,”
― Johnathan Mun, Real Options Analysis: Tools and Techniques for Valuing Strategic Investment and Decisions, 2nd Edition

“The strategic optionalities may include, among other things, the option to expand, contract, abandon, switch, choose, and so forth. Based on the identification of strategic optionalities that exist for each project or at each stage of the project, the analyst can then choose from a list of options to analyze in more detail.”
― Johnathan Mun, Real Options Analysis: Tools and Techniques for Valuing Strategic Investment and Decisions, 2nd Edition