A FUZZY PAY-OFF METHOD FOR REAL OPTION VALUATION: CREDIBILISTIC APPROACH

 

Mikael Collan, Robert Fullér, József Mezei

 

Abstract

 

Real option analysis offers interesting insights on the value of assets and on the profitability of investments, which has made real options a growing field of academic research and practical application. Real option valuation is, however, often found to be difficult to understand and to implement due to the quite complex mathematics involved. Recent advances in modeling and analysis methods have made real option valuation easier to understand and to implement. This paper extends the results of our earlier paper on fuzzy pay-off method for real option valuation by using credibility measures.

 

Lecture Notes in Management Science (2011) Vol. 3: 267-276

3rd International Conference on Applied Operational Research, Proceedings

© Tadbir Operational Research Group Ltd. All rights reserved.

www.tadbir.ca

 

ISSN 2008-0050 (Print)

ISSN 1927-0097 (Online)

 

ARTICLE OUTLINE

 

·         Introduction

·         Credibility Measure

·         The Fuzzy Pay-Off Method

·         Conclusions

·         References

 

Full Text PDF