Paper Title :The Derivation of Diffusion-Jump Modes for Power Plant Projects Under Risk
Author :Chou-Yen Lai, Borliang Chen, Hue-Chiuenshiong
Article Citation :Chou-Yen Lai ,Borliang Chen ,Hue-Chiuenshiong ,
(2017 ) " The Derivation of Diffusion-Jump Modes for Power Plant Projects Under Risk " ,
International Journal of Management and Applied Science (IJMAS) ,
pp. 4-7,
Volume-3,Issue-12
Abstract : High market risks are embedded in mega-scale projects.These risks includepoliticalinstability, economic
instability, social risks, technical risks, and other non-financial factors. All these risk factors will have directly impacted on
financial feasibility of projects. Hence, it isnecessary to performan elaborate financial analysis of projects at planning stage.
A jump diffusion option-pricing model is derived for considering the managerial flexibility of scale expansion in the
financial analysis of projects to increase the project value.
Keywords- Jump Diffusionoption Pricing Model, The Real Option, Call Option.
Type : Research paper
Published : Volume-3,Issue-12
DOIONLINE NO - IJMAS-IRAJ-DOIONLINE-10465
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Copyright: © Institute of Research and Journals
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Published on 2018-02-10 |
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