Real options : managing strategic investment in an uncertain world / Martha Amram and Nalin Kulatilaka.

Amram, Martha, 1957-

Bibliographic record and links to related information available from the Library of Congress catalog
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Preface vii

PART I	The Real Options Potential I
Chapter 1	Introduction 3
Chapter 2	Uncertainty Creates Opportunities 13
Chapter 3	Option Valuation:
          	The Nobel Prize-Winning Breakthrough 29
Chapter 4	From Wall Street to Main Street:
          	Options on Real Assets 47
Chapter 5	Disciplined Strategy 63
Chapter 6	Quick Lessons 79

PART II 	The Real Options Solution Process 87
Chapter 7	The Four-Step Solution Process 89
Chapter 8	Calculating Option Values 107
Chapter 9	Adjusting for Leakage in Value 127

PART III	A Portfolio of Applications 141
Chapter 10	Valuing a Start-up 143
Chapter 11	Investing in a Start-up 149
Chapter 12	Exploring for Oil 155
Chapter 13	Developing a Drug 163
Chapter 14	Investing in Infrastructure 169
Chapter 15 	Valuing Vacant Land 175
Chapter 16 	Buying Flexibility 181
Chapter 17 	Combining Real and Financial Flexibility 187
Chapter 18 	Investing to Preempt Competitors 193
Chapter 19 	Writing a License 199

PART IV Conclusion 	205
Chapter 20 	Changing the Questions We Ask 	207
Appendix 	A Quick Introduction to Discounted Cash Flow
               and the Estimation of Volatility 211

Guide to Literature 215
Notes 223
References 231
Index 241
About the Authors 245