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Compound Options: A Real Options Application To An Agricultural Business

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Listed:
  • Briggeman, Brian C.
  • Detre, Joshua D.
  • Gray, Allan W.

Abstract

Real options analysis integrates uncertain outcomes of investment decisions. This framework is used to analyze a new product launch from an agricultural business to a market with multiple uncertainties. Findings indicate a more accurate valuation of the investment when real options and their interactions with the investment are considered.

Suggested Citation

  • Briggeman, Brian C. & Detre, Joshua D. & Gray, Allan W., 2004. "Compound Options: A Real Options Application To An Agricultural Business," 2004 Annual meeting, August 1-4, Denver, CO 19996, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea04:19996
    DOI: 10.22004/ag.econ.19996
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    References listed on IDEAS

    as
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    3. Stephen G. Powell, 1997. "The Teachers' Forum: From Intelligent Consumer to Active Modeler, Two MBA Success Stories," Interfaces, INFORMS, vol. 27(3), pages 88-98, June.
    4. Trigeorgis, Lenos, 1991. "Anticipated competitive entry and early preemptive investment in deferrable projects," Journal of Economics and Business, Elsevier, vol. 43(2), pages 143-156, May.
    Full references (including those not matched with items on IDEAS)

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