Real options have gained considerable traction among management scholars and practitioners, yet some challenges remain regarding their strategic value and appropriate use. This article seeks to add ...

Real Options Theory provides a rigorous framework for evaluating strategic investments under uncertainty by casting managerial choices as embedded options within projects. It extends traditional ...

Real options analysis provides a rigorous framework for valuing flexibility in climate adaptation investments by treating the right—but not the obligation—to act as a financial option. Under deep ...

In options trading, the extrinsic value of an option represents the portion of the option's price that's based on factors other than the immediate value of exercising it. Also known as “time value,” ...

Fixed or market-based contracts embedded with options such as these enhance flexibility for the prospector and increase the value of the drilling program. The contractor who effectively writes the ...