NDLI: An option pricing model under future revenue uncertainty

Content Provider	Springer Nature Link
Author	Xue, Minggao
Copyright Year	1993
Abstract	The purpose of this paper is to discuss how the value of high-tech firm can be rationally valued by taking into account managerial flexibility when its future revenue is uncertain, thereby the firm’s manager can make rational investment decisions. Using stochastic control theory, the paper will present that the firm’s value satisfies a partially differentiate equation, and analyze the managerial flexibility value within a framework of real-option analytic theorey. Finally, the comparative static analysis and the model’s simple application are given.
Starting Page	311
Ending Page	317
Page Count	7
File Format	PDF
ISSN	10051031
Journal	Applied Mathematics-A Journal of Chinese Universities
Volume Number	18
Issue Number	3
e-ISSN	19930445
Language	English
Publisher	Editorial Committee of Applied Mathematics
Publisher Date	1993-01-01
Publisher Place	Hangzhou
Access Restriction	One Nation One Subscription (ONOS)
Subject Keyword	Real-option managerial flexibility stochastic control Bellman equation Mathematics Applications of Mathematics
Content Type	Text
Resource Type	Article
Subject	Applied Mathematics

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An option pricing model under future revenue uncertainty