Real Options: A Practitioner S Guide

by Thomas E. Copeland

This revised edition of the highly successful book, Real Options, offers corporate decision-makers the ability to assess the profitability of their ventures and decide which avenue of expansion or investment to go down and, crucially, when to take that leap. The reader goes on a journey through real options, from the basics to more advanced topics such as options and game theory. It provides expert guidance on how to implement the theory to maximize investment opportunities by utilizing uncertainty as an asset and reducing downside risk.

Genres: Finance

384 pages, Hardcover

First published February 15, 2001

Reviews

[Robert]

I remain fascinated by the concept of real options, and so far this seems to be a decent introduction to the subject.

I will resume this book at some point.

[Saida Ojagverdiyeva]

Very useful for business appliers. Real options are everywhere and there a lot of scenarios how to exercise them. The book gives theoretical still intuitive explanations on real options-be them operational investments or other strategic decision making.

[Liquidlasagna · Rating 4 out of 5]

Amazone

Packed with Knowledge!
10/10

The phrase, stochastic differential equations may not trip off your tongue and you may not initially see the joy of learning that replicating portfolio value = mV + B.

Yet Tom Copeland and Vladimir Antikarov guarantee that their book is a practical, everyman's guide to the sometimes serious math world of Real Options Analysis (ROA).

Thanks to the availability of personal computers and modeling software, everyone can now use ROA. Before PCs, only doctoral students of finance or economics would have been safe attempting it

Sure, ROA is harder than the traditional valuation methods or Net Present Value (NPV), but real options allow you to understand the full value of an asset by taking into account the factors of flexibility, risk and uncertainty.

Company case models, the theory behind ROA and equations are all showcased in the book.
This can be a challenging text, but we from get Abstract

strongly recommend it to all CFOs and anyone charged with evaluating business strategies.

Rolf Dobelli

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Could be so much better
6/10

What a pity. The first practical guide to the implementation of real options - that I have found at least. Copeland and Antikarov are to be congratulated on finding the gap in the market.

But, alas, this book has been so badly spoiled by the endless number of errors: reflects badly on the authors and publishers and also on all those acknowledged at the front of the book who had an opportunity to comment, but obviously did not read it properly.

On the positive, there are many useful ideas in this book and it has greatly increased my knowledge of the subject.

Bruce Mountain

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There are a lot of wrong numbers in the book. 4/10
Donsen Lee

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Good book on Real Options
10/10
When I bought this book I had only a basic understanding of real options but after reading it I can say I am much more knowledgeable.

Only negative is that at some places the book is a little hard to follow, so it might not be suitable for people who don't have at least basic understanding of derivatives.

Kras

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Mistakes all over
2/10
Xijun Yao

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Decent, but not terribly practical
6/10

But, the book presented its four-step approach toward the end of the book, which requires skipping around.

The middle chapters should have been placed at the end, and the final chapters in the middle.

It seems to have been structured to provide some useful information without revealing the techniques they use in their consulting work.

Decent, but I'm having to shop for a different book for more practical information.

TheRealGoldmund