Title: The generation investment decision based on the Black-Scholes real option pricing model
Abstract: This paper concludes that the real option model for generation investments is corresponding to the Black-Scholes option pricing model considering into the characters of generation projects and option properties in the competitive environments.Then,it sets up the Black-Scholes real option pricing model and puts it into the decision-making of the generation projects,which can avoid the disadvantage that the decision-making of traditional generation projects depending on the net present value.Then,based on the well-developed option pricing theory,a delayed option model of generation investment is developed,it shows that it is feasible to apply real option theory into generation projects.
Publication Year: 2008
Publication Date: 2008-01-01
Language: en
Type: article
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Cited By Count: 2
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