Real options valuation is a crucial methodology employed in complex projects characterized by significant uncertainties, such as oil and gas ventures, mining projects, and research and development initiatives. Proficiency in real options valuation is a rare and highly valuable skill in today’s corporate landscape. This comprehensive course equips you with a well-rounded procedure for real options valuation, ensuring your full mastery of this subject.

Prerequisites:

• Familiarity with investment decision tools
• Understanding of the time value of money

Course Level: Expert

Key Concepts Covered:

• Risk Neutral Probability: Exploring the concept of risk-neutral probability and its relevance in real options valuation
• Binomial Tree: Understanding the construction and application of the binomial tree model in analysing and valuing real options
• Brownian Motion: Investigating the role of Brownian motion in modelling uncertainty and volatility in real options valuation
• Stochastic Calculus: Introduction to stochastic calculus and its application in modelling complex projects
• Backward Induction: Understanding the backward induction method and its significance in solving real options valuation problems
• Flexibility Options: Analysing the different types of flexibility options and their impact on project valuation
• Abandonment Options: Exploring the valuation of abandonment options and their influence on decision-making
• Pricing Options: Understanding various option pricing models and techniques relevant to real options valuation

Course Components:

• On-demand course videos: Comprehensive video lectures providing in-depth explanations and demonstrations of real options valuation procedures
• Downloadable course slides: Presentation slides to reinforce learning and serve as a reference for future use
• Practice questions: Opportunities to apply real options valuation techniques and reinforce understanding through practical exercises
• Case studies: Real-world scenarios and case studies to simulate the application of real options valuation in complex projects
• Final quiz: Evaluating knowledge and comprehension of course material
• Course certificate: A certificate of completion to validate your expertise in real options valuation

Note: This course assumes prior knowledge of investment decision tools and the time value of money. It is designed for individuals seeking an expert level of proficiency in real options valuation, providing comprehensive insights and practical skills necessary to effectively analyze and value complex projects with significant uncertainties.