Risk Simulator Real Options SLS title= Modeling Toolkit PEAT ESO Valuation ROV BizStats
Risk Simulator Runtime ROV Compiler ROV Extractor ROV Optimizer ROV Dashboard ROV Webmodels
Quantitative LSRO SDK rov-visual-modeler
Risk Simulator
Real Options SLS title=
Modeling Toolkit
ESO Valuation
ROV BizStats
Risk Simulator Runtime
ROV Compiler
ROV Extractor
ROV Compiler
ROV Dashboard
ROV Webmodels


Version 2012 now supports English, Chinese (Simplified and Traditional), French, German, Italian, Japanese, Korean, Portuguese, and Spanish!

Real Options SLS


Move beyond the academic papers and theoretical realm, and start applying real options with this new software. Real Options SLS is a standalone software and spreadsheet accessible add-in for analyzing and valuing real options, financial options, exotic options and employee stock options and incorporating them into custom spreadsheet models. The newly designed customized option modules allow you to create your own à la carte fully customized models, where all the mathematical equations and functions are visible, thus demystifying the approach and results, making them easier to understand and explain.


  • Solves Real Options such as sequential compound options, phased stage-gate options, and multiple asset options, with the combinations of options to abandon, barrier, choose, contract, expand, switch, wait and defer, and any user-specific customizable real options, with the ability to mix and match options (mutually exclusive and nested options)
  • Solves Financial Options including mixed multiple assets, benchmark options, warrants, convertibles, structured financial vehicles, combined with American, European, Bermudan and Asian options, and any make-your-own options
  • Solves Employee Stock Options with vesting, forfeitures, suboptimal exercise multiples, performance-based shares (external market or internal corporate), and make-your-own custom options
  • This is the same software used by the U.S. Financial Accounting Standards Board when creating their FAS 123R in 2004
  • You can create your own option models using predefined equations or your own equations, where a 1000-step binomial lattice can be computed in a few seconds (something that if done manually will take hundreds of years on a computer), and also has closed-form model benchmark models from Black-Scholes-Merton to other advanced closed-form American models
  • Available in English, Spanish, Japanese, Chinese (S), Chinese (T), Portuguese, Italian, French, German, Korean, Russian and has multiple language detailed User Manuals with sample case studies and step-by-step modeling techniques and solutions as well as 80 detailed example models
  • Runs Binomial, Trinomial (mean-reverting options), Quadranomial (jump-diffusion options), Pentanomial (rainbow compound options) models as well as over 300+ closed-form advanced options models (state-pricing models, analytical methods, volatility computations, variance reduction, American approximation models, options valuation via simulation techniques, all types of bond-options and convertible warrants, changing volatility options, other options-related models and much more!)
  • ROV Strategy Trees: ROV Strategy Tree is an easy-to-use module for creating visually appealing representations of strategic real options. This module is used to simplify the drawing and creation of strategy trees but is not used for the actual real options valuation modeling (use the Real Options SLS software modules for actual modeling purposes).
  • SLS is fully functional in Excel, where you can run Monte Carlo risk simulation on your option models, link to and from other existing Excel models, and apply other advanced analytics like Risk Simulator’s Monte Carlo simulation, optimization, stochastic forecasting and VBA macros
  • The generated lattices’ equations and functions in Excel are fully visible with a live model with links and equations…
  • It is a powerful options modeling learning tool
  • SLS is a fully customizable modeling tool, with the ability to enter in your own options equations
  • Leverage existing static NPV analysis to add financial sophistication including dynamic simulation, real options analysis, and optimization and you can use a framework for identifying, valuing, selecting, and prioritizing the right projects to gain additional insights into strategic value and management flexibility in decision making
  • You can correctly evaluate a project’s strategic intrinsic value and eliminate the possibility of undervaluing the strategic value of certain projects, identify, frame, and value future strategic opportunities, and incorporate new decisions over time, as opposed to NPV’s requirement that all decisions be defined at the outset by analyzing multiple strategic decision pathways, as opposed to NPV’s single decision pathway
  • The SLS software is a reliable, repeatable, and consistent process for decision making within a user-friendly software with powerful analysis tools to solve problems that cannot be otherwise solved
  • 8 books on risk analysis, real options, and options valuation writtenby the software’s creator, a set of Training DVD on real options and risk analysis(simulation, forecasting, optimization, real options, and applied statistics)


Real Options SLS software can be downloaded immediately from our website with a default 10 day trial license. Our philosophy is you get to try before you buy. Once you use it, we are convinced you will fall in love with the simplicity and the power of the tool, and it will become an indispensible part of your modeling toolbox. We also have academic licenses for full-time professors teaching risk analysis (and their students) or other associated courses using Real Options SLS or our company’s other software products. Contact admin@realoptionsvaluation.com for details.


Advanced analytical tools such as the Risk Simulator software are built to be easy to use but may get the analyst in trouble if used inappropriately. Sufficient theoretical understanding coupled with pragmatic application experience is vital; therefore, training is critical.

Our Risk Analysis  course is a two-day seminar focused on hands-on computer-based software training, with topics covering the basics of risk and uncertainty, using Monte Carlo simulation (pitfalls and due diligence), and all of the detailed methods in forecasting and optimization.

We also have a Real Options for Analysts  course for the analysts who want to immediately begin applying strategic real options in their work, but lack the hands-on experience with real options analytics and modeling. This two-day course covers how to set up real options models, apply real options, and solve real options problems using simulation, closed-form mathematics, binomial and multinomial lattices using the Real Options SLS software.

The Certified Quantitative Risk Management (CQRM)  seminar is a four-day hands-on class that covers the materials on our Risk Analysis and Real Options for Analysts courses and geared towards the CQRM certification provided by the International Institute of Professional Education and Research (AACSB member and eligible for 30 PDU credits with the Project Management Institute, Inc (PMI)®).

Our Risk Analysis for Senior Managers is a one day course specially designed for senior executives, where we will review case studies in risk management from 3M, Airbus, Boeing, GE, and many others. It provides an executive overview of risk analysis, strategic real options, portfolio optimization, forecasting and risk concepts without the technical details.

Also available are other customized decision, valuation and risk analysis courses with an emphasis on on-site trainings customized to your firm’s exact needs based on your business cases and models). Consulting services are available, including the framing of risk analysis problems, simulation, forecasting, real options, risk analytics, model building, decision analysis, integrated OEM and software customization.


Dr. Johnathan Mun is the software’s creator and teaches the Risk Analysis, Real Options for Analysts, Risk Analysis for Managers, CRM, and other courses. He has consulted for many Fortune 500 firms (from 3M, Airbus, and Boeing to GE and Motorola) and the government (Department of Defense, State and Federal Agencies) on risk analysis, valuation, and real options, and has written a number of books on the topic, including Real Options Analysis: Tools and Techniques, 1st and 2nd Edition (Wiley Finance, 2005, 2002); Real Options Analysis Course: Business Cases (Wiley Finance, 2003); Applied Risk Analysis: Moving Beyond Uncertainty in Business (Wiley, 2003); Valuing Employee Stock Options Under 2004 FAS 123 (Wiley Finance, 2004); Modeling Risk: Applying Monte Carlo Simulation, Real Options Analysis, Forecasting and Optimization (Wiley, 2006); Advanced Analytical Models: 800 Functions and 300 Models from Basel II to Wall Street and Beyond (Wiley 2008); The Banker’s Handbook on Credit Risk: Implementing Basel II (Elsevier Academic Press 2008); and others. He is the founder and CEO of Real Options Valuation, Inc., and is responsible for the development of analytical software products, consulting, and training services. He was formerly Vice President of Analytics at Decisioneering, Inc. (Oracle), and was a Consulting Manager in KPMG’s Global Financial Strategies practice. Before KPMG, he was head of financial forecasting for Viking, Inc. (an FDX/FedEx Company). Dr. Mun is also a full professor at the U.S. Naval Postgraduate School, a professor at the University of Applied Sciences and Swiss School of Management (Zurich and Frankfurt), and he has held other adjunct professorships at various universities. He has a Ph.D. in finance and economics, an MBA in business administration, an M.S. in the area of management science, and a BS in applied sciences. He is certified in Financial Risk Management (FRM), Certified in Financial Consulting (CFC), and Certified in Risk Management (CRM).

PMI is a registered mark of the Project Management Institute, Inc.