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401-8925-00L 3 Credits NDS , MSC D-GESS , D-ARCH , D-MTEC , D-MATH , D-BAUG , D-PHYS
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Real Options

Lecturers & Examiners: Prof. Dr. Rajna Gibson
VVZ CR n/a

Last Updated: 2026-02-05 15:06:39

Abstract

This course is intended to provide students with a good knowledge of real options analysis.

Objective

This course is intended to provide students with a good knowledge of real options analysis.

Content

The limitations of the NPV approach. Flexibility and options pricing theory: some fundemental concepts. An overview of sources of originiation and of the different types of flexibilities provided by real options. The time to wait option, its valuation and application to investments project valuation. Managerial flexibility, sequential investments and other flexibility components of real investments. Applications to the mining and natural resources industries based on case studies. The valuation of R&D projects, patents and other contractual arrangements within the real option framework. Valuing horizontal real option framework. Valuing horizontal real options: the case of multinational firms flexibility. Strategic real options management under competition and asymetric information. Concluding remarks on the applicability, limitations and open issues of the real options approach.

General Information

Language
English
Levels
NDS , MSC
Frequency
Yearly recurring

Examination

Type
end-of-semester examination

Course Components

Type Title Time & Place Hours
lecture Real Options
  • Wed 10:15-12:00
  • Wed None-None
2 h weekly

Offered In