## Abstract

This appendix presents the analytical model of the expansion option problem shown in Chapter 5. The characteristics of this problem are similar to those of the problem analyzed by Batista in [1] and by Dixit and Pindyck in [2].

Dixit and Pindyck establish an analogy between a real option and a financial call option where the underlying asset price, the project value V, follows an exogenous stochastic process.

Dixit and Pindyck establish an analogy between a real option and a financial call option where the underlying asset price, the project value V, follows an exogenous stochastic process.

Original language | English |
---|---|

Title of host publication | Studies in Computational Intelligence |

Editors | Marco A. C. Pacheco, Marley M. B. R. Vellasco |

Place of Publication | Berlin, Heidelberg |

Publisher | Springer |

ISBN (Print) | 9783540929994, 9783540930006 |

DOIs | |

State | Published - 2009 |