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Real options in a systemic approach to the timing problem in development projects

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  • Krzysztof Targiel

Abstract

The management environment at the beginning of the XXI century is characterized by high volatility. Development projects should take into account not only certain deliverables but also any oppor- tunities that may arise. These opportunities are called real options. The paper describes a systems approach to various types of real options that can be found in a project’s environment. A method is presented for using such options in the timing problem.

Suggested Citation

  • Krzysztof Targiel, 2015. "Real options in a systemic approach to the timing problem in development projects," Operations Research and Decisions, Wroclaw University of Science and Technology, Faculty of Management, vol. 25(3), pages 73-85.
    • Handle: RePEc:wut:journl:v:3:y:2015:p:73-85:id:1171
    DOI: 10.5277/ord150305
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    References listed on IDEAS

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    1. Ingersoll, Jonathan E, Jr & Ross, Stephen A, 1992. "Waiting to Invest: Investment and Uncertainty," The Journal of Business, University of Chicago Press, vol. 65(1), pages 1-29, January.
    2. Boyle, Phelim P., 1988. "A Lattice Framework for Option Pricing with Two State Variables," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 23(1), pages 1-12, March.
    3. Black, Fischer & Scholes, Myron S, 1973. "The Pricing of Options and Corporate Liabilities," Journal of Political Economy, University of Chicago Press, vol. 81(3), pages 637-654, May-June.
    4. Guthrie, Graeme, 2009. "Real Options in Theory and Practice," OUP Catalogue, Oxford University Press, number 9780195380637.
    5. Cox, John C. & Ross, Stephen A. & Rubinstein, Mark, 1979. "Option pricing: A simplified approach," Journal of Financial Economics, Elsevier, vol. 7(3), pages 229-263, September.
    6. Boyle, Phelim P., 1977. "Options: A Monte Carlo approach," Journal of Financial Economics, Elsevier, vol. 4(3), pages 323-338, May.
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    Cited by:

    1. Maciej Nowak & Krzysztof Targiel, 2018. "Using a multicriteria interactive approach in scheduling non-critical activities," Operations Research and Decisions, Wroclaw University of Science and Technology, Faculty of Management, vol. 28(1), pages 43-56.

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