The Option Game Approach of Project Valuation

摘要

Option game evaluation model of invest project is a theoretical result that the interaction of option game thought and project evaluation. To balance the contradiction between the simplicity of project possibility discretion and the complexity of option game model, searching simple evaluation model and building right discretion principle is the main approach of option game evaluation theory development. To make practical project evaluation, this paper presents the discrete option game approach of investment project evaluation which is based on Smit and Ankum (1993), Smit and Trigeorgis (1997), Smets (1991), Huisman and Kort (1998, 1999) and their most recent researches. The writer thinks that they have developed the special evaluation framework of investment project based on the discrete-time option game and continuous-time option game analysis.