Real options analysis course : business cases and software applications (with real options toolkit software cd-rom)

Cutting-edge information on the valuation and application of real options Most investors and risk managers are familiar with financial options. But the real option structure is embedded in billions of dollars of stocks traded everyday, and in billions of dollars of strategic or investment decisions made by many companies. Real Options Analysis Course: Business Cases and Software Applications provides an advanced view of evaluating and valuing capital investment strategies by taking into consideration the strategic decision-making process. A perfect complement to Mun's earlier endeavor-Real Options Analysis: Tools and Techniques for Valuing Strategic Investments and Decisions-this new book reviews the basics of financial modeling and real options, and then provides the most comprehensive series of real options business cases and solutions currently available. Readers will also benefit from the Real Options Analysis Toolkit software-included on a companion CD-ROM-which features seventy different real options functions, thirty-three models, easy-to-use templates, and a powerful graphical interface. Johnathan Mun, PhD (Denver, CO), is the Director of Corporate Finance Development at Decisioneering, Inc. the makers of Crystal Ball analytical software. His duties focus primarily on heading up the development of real options and financial analytics powered by Crystal Ball . He has also written Real Options Analysis (0-471-25696-X)

Part 1: INSTALLING THE SOFTWARE. Installing Crystal Ball® Monte Carlo Simulation Software. Installing Real Options Analysis Toolkit Software. Part 2: GETTING STARTED WITH THE SOFTWARE . Getting Started With Crystal Ball Software. Getting Started With Real Options Analysis Toolkit Software. Part 3: FRAMING REAL OPTIONS . Step 1. Qualify List of Projects and Strategies. Step 2. Forecast Base Case Variable for Each Project. Step 3. Create Static Discounted Cash Flow Models for Each Case. Step 4. Monte Carlo Simulation - DCF Outputs Become Real Options Inputs. Step 5. Framing the Real Options. Step 6. Options Analytics, Simulation and Optimization. Step 7. Reports, Presentations and Update Analysis. Part 4: THE BASICS OF FINANCIAL MODELING . Financial Analysis. Monte Carlo Simulation. Volatility Estimates. Part 5: THE BASICS OF REAL OPTIONS . Binomial Lattices. Granularities in Lattices. State-Pricing Approach to Solving a European Option. Trinomial Lattices and American Options. Part 6: REAL OPTIONS BUSINESS CASES . Option to Abandon. Option to Expand. Option to Contract. Option to Choose. Compound Options. Closed-Form Compound Options. Sequential Compound Option. Changing Costs. Changing Volatility. Option to Contract and Abandon. Basic Black-Scholes with Dividends. Barrier Options. Stochastic Timing Options. Switching Option. Closed-Form Equations and Binomial Convergence. Non-Recombining Lattices. Part 7: EXTENDED PROBLEMS . Combining Forecasting, DCF Modeling, Real Options, and Organization. Part 8: EXERCISE SOLUTIONS . Real Options Model Software Function Description for Excel. Part 9: REAL OPTIONS TABLES . A. Real Options Value Tables. B. Implied Volatility Tables. C. Dividend Impact Tables.