The concept of real options has been considered one of the leading approaches in world theory and management practice for more than two decades. Using real options is a contemporary, active way to manage risk. The flexibility built into projects needs to be specifically designed, and projects with built-in flexibility are of great value.
A real option at the same time is:
the factually existing phenomenon used by managers is sometimes purely intuitive;
a powerful conceptual apparatus for the development and adoption of strategic decisions;
a way to clarify the net present value of the project (NPV) in its analysis, which allows in some cases to more adequately evaluate real assets and manage them.
The purpose of this literature review is to examine the role of real options in management.
A major American specialist in financial theory S. Myers formulated the term «real option» in the late 70s of the XX century. This happened a few years after the first publication of F. Black and ...