Real Options Analysis by Dr. Johnathan Mun (Wiley 2002), provides you with a comprehensive overview of the real options methodology and explores the tools and techniques inherent in this method that will allow you to efficiently value strategic investments and decisions. It examines both the qualitative and quantitative aspects of real options, the methods used in valuing real options, why and when they are used, as well as the applicability of these methods in decision-making. Real options expert Johnathan Mun will help you understand and implement real options analysis under a variety of circumstances and over a wide range of industries, from pharmaceutical, oil, and gas to manufacturing and technology. Mun first looks at the qualitative nature of real options and provides actual business cases and scenarios of real options in the industry, as well as high-level explanations of how real options provide much-needed insights for decision-making. He then focuses on quantitative analysis, and reveals the power of simulation and real options analysis through the book’s companion CD-ROM.
From the basics of expansion and switching options to advanced options problems such as valuing timing options calculated with stochastic optimization, Real Options Analysis is a complete and accessible guide to the uses of real options in the decision-making process. Through expert advice, in-depth case studies, mathematical formulae, real-world scenarios, real options software, and end-of-chapter questions, Real Options Analysis provides serious insights into the understanding and application of real options when valuing strategic investments and decisions.
“This book is a must-have and must-read . . . Mun’s new book is a refreshing, cutting-edge look at a powerful new decision-making process . . . it isn’t often you can truthfully say a book breaks new ground, but [this book] has certainly done that.”
-Glenn G. Kautt, President, Monitor Group, Inc. (USA)
“Many books on real options can be intimidating. Mun offers a pragmatic, reliable, and entertaining guide. Complex concepts and formulas are brilliantly interspersed with well-chosen examples and step-by-step walk-throughs from a variety of industries.”
-Shota Hattori, President and CEO, Kozo Keikaku Engineering, Inc. (Japan)
“The clarity and comprehensive coverage makes it one of the best guides for all practitioners . . . coupled with state-of-the-art financial tools on CD-ROM.”
-Michael Sim, Partner, Moores Rowland International (Hong Kong)
“Mun certainly has earned the reputation of being an expert on the subject . . . consultants, analysts, decision-makers and engineers will be all over this book and its software.”
-Phyllis Koessler, Managing Director, Koessler and Associates (Switzerland)
“Finally, a real options analysis book that is technically sophisticated enough to be useful, and practically written so that it can actually be used. It is destined to become the handbook of real options.”
-A. Tracy Gomes, President, Intellectual Property Economics, LLC (USA)