Paper | Category |
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Myers (1977) Pioneered real option pricing methodology | Introduced Real option as a decision opportunity for a corporation or an individual. The real option value (ROV) is the value of this decision opportunity to buy or sell the project |
McDonald and Siegel (1986), Quigg (1993) and Kulatilaka (1998) | First to consider real option with stochastic strike |
Capozza and Sick (1991), Trigeorgis (1993), Benaroch and Kauffman (2000), Boer (2000), Yeo and Qiu (2002) | They assume that forward prices follow geometric Brownian motion |
Oil exploration, Leslie and Michaels (1997) | Advocating the use of Real Option Analysis with a hypothetical example applied to oil field extraction choices |
Oil refineries whereby management has some flexibility to switch operating process units in response to a change in prices, Imai and Nakajima (2000) | Development of multinomial lattice model to value the flexibility of the inherent real options within an oil refinery with recommendation that management incorporate such valuations when evaluating oil refinery projects |
Power Generation Assets, Eydeland and Wolyniec (2002) | Description of the mathematical problem of optimising and valuing power generation and storage assets |
Valuing the option to switch between the dry bulk market and wet bulk market for a combination carriers, Sødal et al. (2008) | Uses real option analysis to investigate market efficiency in switching a dry bulk to the wet tanker market and vice versa |
Evaluate investments in pump storage plants, Muche (2009) | Application of Real Option Analysis in order to value the flexibility of pump storage plants, taking into consideration power price volatility and price spikes |
Investment strategy for underground gas storage facilities based on real option model considering gas market reform in China, chen2018investment | Real option application for the investment timing and value of gas storage |
Valuing investment decisions of renewable energy projects considering changing volatility, Zhang et al. (2020) | Real option application to model solar power generation investment |
Coal Mining Project, krisna2021economic | Application of real option analysis to coal mining project investments |
Economic feasibility of forest biomass thermal energy facility, An and Min (2021) | Real Option approach on the use of forecst biomass investments |
Assessment of Iron Ore Project, Amusan and Adinya (2021) | Real option application for the investment timing and value of iron ore mining projects |
Re-processing of mine tailings, Araya et al. (2021) | Application of real option analysis on investment decisions related to re-processing of mine tailings |