Real options analysis course business cases and software applications

[...]... Programs, Crystal Ball, Real Options Analysis Toolkit, and Toolkit (Figure 1.28) If the installation process has been successful, the software will launch Microsoft Excel and FIGURE 1.26 Component selection screen at setup FIGURE 1.27 Setup completion verification screen FIGURE 1.28 Location of the Real Options Analysis Toolkit software 13 14 INSTALLING THE SOFTWARE FIGURE 1.29 Real Options Analysis Toolkit... Real Options Tables 251 Real Options Value Tables 251 Implied Volatility Tables 266 Dividend Impact Tables 272 APPENDIX Case Studies More, Faster, Cheaper—The Siren Call of Upstream R&D 281 Real Options Analysis Applied to Valuing Start-Up Entities: The Digital News, Inc INDEX 281 284 295 Real Options Analysis Course CHAPTER 1 Installing the Software INSTALLING CRYSTAL BALL MONTE CARLO SIMULATION SOFTWARE. ..CONTENTS x CHAPTER 5 The Basics of Real Options 73 Binomial Lattices 73 Granularities in Lattices 77 State-Pricing Approach to Solving a European Option Trinomial Lattices and American Options 90 88 CHAPTER 6 Real Options Business Cases Option to Abandon 95 Option to Expand 105 Option to Contract 117 Option to Choose 126 Compound Options 136 Closed-Form Compound Options 144 Sequential Compound Option... ready to install the Real Options Analysis Toolkit software and begin the exercises Refer to Chapter 2, Getting Started with the Software, to begin using the software FIGURE 1.13 Crystal Ball menu bar in Microsoft Excel FIGURE 1.14 Menu item in Microsoft Excel FIGURE 1.15 Add-ins dialog box in Microsoft Excel 7 INSTALLING THE SOFTWARE 8 INSTALLING REAL OPTIONS ANALYSIS TOOLKIT SOFTWARE I recommend... the installation (Figure 1.22) Read the end-user licensing agreement and click Yes if you agree with the statement and to continue with the installation process (Figure 1.23) Then, enter your name and company name, and click Next to continue Installing Real Options Analysis Toolkit Software 11 FIGURE 1.22 Real Options Analysis Toolkit software setup welcome screen FIGURE 1.23 License acceptance screen... Contract and Abandon 162 Basic Black-Scholes with Dividends 167 Barrier Options 171 Stochastic Timing Options 175 Switching Option 178 Closed-Form Equations and Binomial Convergence Nonrecombining Lattices 189 95 183 CHAPTER 7 Extended Problems: Combining Forecasting, DCF Modeling, Real Options, and Optimization 201 CHAPTER 8 Exercise Solutions 213 CHAPTER 9 Real Options Analysis Toolkit Software Function... the Crystal Ball software before installing the Real Options Analysis Toolkit, and that you exit all other programs before starting the installation process To start the installation process, browse the contents of the CD-ROM Open the Real Options Software folder and double-click on the setup.exe file (Figure 1.16) (You need to have administrative rights before you can install the software Please see... number if you purchased the software You may contact www.crystalball.com to obtain an extended trial period registration code Refer to Chapter 2, Getting Started with the Software, on how to get started using the software FIGURE 1.30 Real Options Analysis Toolkit software main welcome screen CHAPTER 2 Getting Started with the Software GETTING STARTED WITH CRYSTAL BALL SOFTWARE The following exercise... Installing the Software INSTALLING CRYSTAL BALL MONTE CARLO SIMULATION SOFTWARE To get started with the business cases, you first have to install the Crystal Ball® Monte Carlo simulation software The Crystal Ball software needs to be installed prior to installing the Real Options Analysis Toolkit software covered in the next section You do not have to install Crystal Ball if you have a previous version... setup screen 9 10 INSTALLING THE SOFTWARE FIGURE 1.20 Microsoft NET Setup status screen FIGURE 1.21 Microsoft NET Setup completion verification screen After the Microsoft NET Framework is installed, the Real Options Analysis Toolkit software installation starts automatically If it does not, simply rerun the setup.exe file by double-clicking on the file located in the Real Options folder Click on Next to . Cataloging-in-Publication Data: Mun, Johnathan. Real options analysis course : business cases and software applications / Johnathan Mun. p. cm. Published simultaneously in Canada. ISBN 0-4 7 1-4 300 1-3 (Cloth/CD-Rom : alk analyst and graduate student in mind. Real Options Analysis Course s business cases, exercises, step-by- step methodologies, and applications have been adapted for and solved using the enclosed Real. 0-4 7 1-4 300 1-3 (Cloth/CD-Rom : alk. paper) 1. Real options (Finance) I. Title: Business cases and software applications (with real options toolkit software CD-Rom). II. Title. HG6042 .M855 2003 332.63—dc21 2002153126 Printed