Efeito da flexibilidade na decisão de investimento: Uma aplicação à exploração do cobre
[Flexibility effect on the investment decision: An application to the exploration of copper]
AbstractThis research evidences the value of flexibility on the investment decision, in the exploration sector of copper, face to the existence of an abandonment option. The results of three evaluation models are compared: the Net Present Value; the Binomial and a Suitable Binomial to the exploration sector of copper. Monthly quotations of copper of the LME had been used; values for the Producers Price Index; e values of OT-September with maturity nearest to the time horizon of the investment. To the similarity of other applications of the real options, we confirm that, in uncertainty context, the traditional method significantly understates the return of the investment decisions.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 6185.
Date of creation: 2004
Date of revision:
Publication status: Published in Revista Economia Global e Gestão nº 1.vol. I(2004): pp. 11-32
Flexibilidade na Decisão de Investimento; Opções Reais; Sector de Exploração do Cobre; Exploração de Recursos Naturais; Métodos de Avaliação de Investimentos;
Find related papers by JEL classification:
- G39 - Financial Economics - - Corporate Finance and Governance - - - Other
- G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
- G13 - Financial Economics - - General Financial Markets - - - Contingent Pricing; Futures Pricing
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Cox, John C. & Ross, Stephen A. & Rubinstein, Mark, 1979. "Option pricing: A simplified approach," Journal of Financial Economics, Elsevier, vol. 7(3), pages 229-263, September.
- Moyen, Nathalie & Slade, Margaret & Uppal, Raman, 1996.
"Valuing risk and flexibility : A comparison of methods,"
Elsevier, vol. 22(1-2), pages 63-74.
- Moyen, N. & Slade, M. & Uppal, R., 1996. "Valuing Risk and Flexibility: A Comparison of Methods," G.R.E.Q.A.M. 96b08, Universite Aix-Marseille III.
- Bonini, Charles P., 1977. "Capital Investment under Uncertainty with Abandonment Options," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 12(01), pages 39-54, March.
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