Excellence in

MBA 2011 Real Options Analysis
Contacts hour per week
Spinler, Stefan
1. The Net Present Value approach to valuation, basic Real Options valuation
2. Real Options: Binomial Lattices
3. Real Options: The option to switch and interaction of multiple options
4. Real Options: Rainbow options; combining real options and Monte Carlo simulation
5. Real Options: Applications in R&D Project Management
6. Further applications of real options; risk management via capacity options
Teaching methods
lectures, case studies, group work
F.K. Crundwell: Finance for Engineers, Springer 2008
A. Dixit and R. Pindyck: The Options Approach to Capital Investment Harvard Business Review, May - June 1995
A. Buller: Oil and gas technologies, 2009
McCormack and Sick: Valuing PUD reserves: a practical application of real options techniques, 2001
R. Aboulafia: Commercial Jetliners - History and Forecast, 2010
R. Henke: Aircraft, 2009
A. Huchzermeier, C. Loch: Project management under risk: using the real options approach to evaluate flexibility in R&D, Management Science, vol. 47
Spinler, Huchzermeier: Cpacity Options: Convergence of Supply Chain Management and Financial Asset Management in: M. Frenkel, U. Hommel, M. Rudolf (Hrsg.): Risk Management: Challenge and Opportunity (2nd Edition), Spinger
Method of examination
10 % Class participation
60 % Case assignments
30 % Real Options application project