Through theory and case studies, this book details how uncertainty and flexibility can be evaluated to assist in making better investment decisions in companies. It delivers an excellent balance of theory and practice in the area of investment decision making, demonstrates how financial and real options are related, and describes the theoretical underpinnings of both. The author presents case studies from diverse industries, including life sciences, pharmaceuticals, commodities, energy, technology, manufacturing, and financial services. He also looks at how organizations can become successful using a holistic framework that integrates uncertainty and flexibility.

chapter 1|2 pages


chapter 2|12 pages

Decisions, Options, and Decision Options

chapter 4|8 pages

Private Risks and Probabilities

chapter 5|10 pages

Market Risks and Stochastic Processes

chapter 7|20 pages

Pricing of Decision Options

chapter 8|10 pages

Employee Stock Options as Decision Options

chapter 9|82 pages

Case Studies in Life Sciences

chapter 10|36 pages

Case Studies in Technology and Manufacturing

chapter 11|52 pages

Case Studies in Commodities

chapter 12|22 pages

Case Studies in Financial Services

chapter 13|6 pages

Misperceptions Regarding Real Options

chapter 15|8 pages

Past, Present, and Future