Real Option Analysis and Climate Change : a New Framework for Environmental Policy Analysis /: a New Framework for Environmental Policy Analysis. (©2020)
- Record Type:
- Book
- Title:
- Real Option Analysis and Climate Change : a New Framework for Environmental Policy Analysis /: a New Framework for Environmental Policy Analysis. (©2020)
- Main Title:
- Real Option Analysis and Climate Change : a New Framework for Environmental Policy Analysis
- Further Information:
- Note: Benoit Morel.
- Other Names:
- Morel, Benoit
- Contents:
- Intro; Preface; Contents; Chapter 1: Prolegomena: What Does Real Option Analysis Bring to Climate Change Policy; 1.1 Introducing the Problem; 1.2 The IPCC Reports; 1.2.1 Dealing with the Uncertainty and the Limitations of Existing Mathematical Models; 1.2.2 Cost Benefit Analysis; 1.2.3 Limitations of Net Present Value; 1.2.4 Prospects Offered by Real Options; 1.3 Risk and Uncertainty; References; Chapter 2: Toward a General Theory of Real Options; 2.1 Introduction; 2.1.1 The Impact of Black-Scholes on Real Options; 2.1.2 Black-Scholes as a Black Swan; 2.2 What Are ``Options?́́ 2.2.1 Value of Options2.2.2 Risk-Neutral Valuation of Options; 2.3 The Role of the ``Corporate Culture ́́in the Genesis of Real Option Analysis; 2.4 Financial Options as a Particular Case of Real Options; 2.5 Prospects of ROA in Environmental Policy; 2.6 Foundations of Option Theory; 2.6.1 Bachelierś ``Théorie de la Spéculation;́́ 2.6.1.1 Bachelier Rediscovered; 2.6.1.2 Léspèrance Mathématique du Spéculateur est Nulle; 2.6.1.3 Black-Scholes; 2.6.1.4 Risk Neutrality: A Milestone in the History of Options; 2.6.2 The Emergence of Real Options 2.6.2.1 What Does the Value of an Option Measure: The Price of a Right or Something Else?2.6.2.2 Real Options as ``Derivatives;́́ 2.6.2.3 Real Options as Hedging Instruments; 2.6.2.4 Risk Neutrality and Real Options; 2.6.2.5 How Risk Neutrality Enters in the Valuation of Options; 2.7 The Mathematical Foundations of ROA; 2.7.1 Mathematical Framework; 2.7.2 The ValueIntro; Preface; Contents; Chapter 1: Prolegomena: What Does Real Option Analysis Bring to Climate Change Policy; 1.1 Introducing the Problem; 1.2 The IPCC Reports; 1.2.1 Dealing with the Uncertainty and the Limitations of Existing Mathematical Models; 1.2.2 Cost Benefit Analysis; 1.2.3 Limitations of Net Present Value; 1.2.4 Prospects Offered by Real Options; 1.3 Risk and Uncertainty; References; Chapter 2: Toward a General Theory of Real Options; 2.1 Introduction; 2.1.1 The Impact of Black-Scholes on Real Options; 2.1.2 Black-Scholes as a Black Swan; 2.2 What Are ``Options?́́ 2.2.1 Value of Options2.2.2 Risk-Neutral Valuation of Options; 2.3 The Role of the ``Corporate Culture ́́in the Genesis of Real Option Analysis; 2.4 Financial Options as a Particular Case of Real Options; 2.5 Prospects of ROA in Environmental Policy; 2.6 Foundations of Option Theory; 2.6.1 Bachelierś ``Théorie de la Spéculation;́́ 2.6.1.1 Bachelier Rediscovered; 2.6.1.2 Léspèrance Mathématique du Spéculateur est Nulle; 2.6.1.3 Black-Scholes; 2.6.1.4 Risk Neutrality: A Milestone in the History of Options; 2.6.2 The Emergence of Real Options 2.6.2.1 What Does the Value of an Option Measure: The Price of a Right or Something Else?2.6.2.2 Real Options as ``Derivatives;́́ 2.6.2.3 Real Options as Hedging Instruments; 2.6.2.4 Risk Neutrality and Real Options; 2.6.2.5 How Risk Neutrality Enters in the Valuation of Options; 2.7 The Mathematical Foundations of ROA; 2.7.1 Mathematical Framework; 2.7.2 The Value of Exchanging Two Risky Assets; 2.7.3 First-Degree Homogeneity; 2.7.4 Sum and Ratio Distributions; 2.7.5 Risk Neutrality Mathematically and Its Effect on the Valuation of Options; 2.7.6 The Black-Scholes Formula 2.7.7 Black-Scholes Cannot Be Applied Everywhere, but There Is Life in Real Option Theory Outside of Black-Scholes2.7.8 When Can Risk Neutrality Be Invoked? Portfolio Argument; 2.7.9 How Does One Recognize When Risk Neutrality Applies?; 2.8 Toward a Real Options Theory; 2.8.1 The Basic Structure of a Real Option Valuation; 2.8.2 Can We Speak of a Theory of Real Options?; 2.8.3 What Do Theories Do?; References; Chapter 3: Real Option Analysis: Work in Progress, in Need of Progress; 3.1 Net Present Value Compared with Real Options; 3.2 Classical Real Options Success Stories 3.2.1 Strategic Investments3.2.2 Compound Options; 3.2.3 The ``License to Kill ́́Problem; 3.2.4 Flexibility in the Design of a Project; 3.2.5 The Value of Abandoning a Project; 3.2.6 Growth Options; 3.3 When ROA Raises Serious Legitimate Questions; 3.3.1 The Borison Controversy; 3.3.1.1 Five Different ROA Valuations; 3.3.1.2 When Black-Scholes Is Used; 3.3.1.3 Replicating Portfolio and Risk Neutrality; 3.3.1.4 The Other Approaches; 3.3.2 A Call for More Theoretical Precision: The Georgetown Challenge; 3.3.3 A ``Solution ́́of the Problem of Borison that Meets the Georgetown Criteria … (more)
- Publisher Details:
- Cham : Springer
- Publication Date:
- 2020
- Copyright Date:
- 2020
- Extent:
- 1 online resource (168 pages)
- Subjects:
- 332.63
Real options (Finance)
Environmental policy -- Economic aspects
Environmental policy -- Economic aspects
Real options (Finance)
Electronic books - Languages:
- English
- ISBNs:
- 9783030120610
3030120619 - Related ISBNs:
- 3030120600
9783030120603 - Notes:
- Note: Includes bibliographical references and index.
Note: Print version record. - Access Rights:
- Legal Deposit; Only available on premises controlled by the deposit library and to one user at any one time; The Legal Deposit Libraries (Non-Print Works) Regulations (UK).
- Access Usage:
- Restricted: Printing from this resource is governed by The Legal Deposit Libraries (Non-Print Works) Regulations (UK) and UK copyright law currently in force.
- View Content:
- Available online (eLD content is only available in our Reading Rooms) ↗
- Physical Locations:
- British Library HMNTS - ELD.DS.432612
- Ingest File:
- 02_551.xml