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Monte Carlo option model - A Monte Carlo model, in its most general description, includes any method of estimating a value by the random generation of numbers and statistical principles. As a way of pricing or valuing options, Monte Carlo option models use a pseudo-random sequence, one that will be random enough the simulate a range of outcomes yet deterministic enough to reproduce when necessary.

Real Options Analysis - Real Options Analysis involves applying the mathematical techniques found in financial options to assess the best course of action to be taken when faced with a real-life decision. For example, R&D managers can use Real Options Analysis to help them determine ...

Real option - A real option is the right, but not the obligation, to undertake some business decision, typically the option to make a capital investment. For example the opportunity to invest in the expansion of a firm's factory is a real option.

Real options - An alternative or choice that becomes available with a business investment opportunity.


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