Real Options Valuation Based on Certainty Equivalents
This purpose of this research is to identify appropriate rates to discount the flows from real options in situations in which the risk-free rate does not apply, in particular, in incomplete markets. A methodology is proposed for valuing real options based on certainty equivalence, which requires as...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Universidad EAFIT
2014-12-01
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| Series: | Ecos de Economía |
| Subjects: | |
| Online Access: | http://publicaciones.eafit.edu.co/index.php/ecos-economia/article/view/2706 |