Dissertation > Excellent graduate degree dissertation topics show

The Research to the Investment Decision-Making Basing on the Option Pricing Theory

Author: ZhouXiZhi
Tutor: ChenDaoPing
School: Chongqing Normal University
Course: Applied Mathematics
Keywords: Investment decisions NPV Options Real Options
CLC: F830.59
Type: Master's thesis
Year: 2008
Downloads: 174
Quote: 1
Read: Download Dissertation

Abstract


Increasing uncertainty in the market, the traditional methods are no longer adapted to the modern investment decisions investment management requirements. The traditional method does not take into account most of the decision-making investment decisions facing the future benefits and costs of uncertainty, but the assumption of future cash flows can be accurately estimated from: the traditional method does not take into account most of the investment has a partial or total irreversibility, ignores the initial investment costs can not be fully retracted once, which formed sunk costs. All this makes the option is not adaptive method came into being. The major breakthrough in option theory on its application in physical assets provides a theoretical premise, and the theory of uncertainty and flexibility reasonable solution, but also makes its investments in the field of application have become a study to determine inalienable orientation. This is discussed in this case option in Investment Decision. This paper first introduces the research background and purpose of the project focuses on the development and investment decision making theory research status at home and abroad. In the second chapter, the basic concepts of options paper introduces the basic theory of financial options and Black-scholes option pricing theory, and then leads to real option pricing theory, and with the financial options were compared. Chapter III discusses the option pricing theory in investment decisions feasibility of estimating the value of the investment decision options are classified, and compared the decision-making NPV and option pricing. The fourth chapter is the main part of this paper. First rigorous proof of a single phase of the project and continuous investment decision optimal investment rules that determine the optimal investment threshold decision rules and their scope, when the investment value of the project is greater than the critical value, the investment; otherwise not invest , and the critical value of the influencing factors are analyzed. Respectively, the latter part of this chapter demonstrates the option pricing theory to investment decisions under different circumstances specific application. Finally, the fifth chapter, a summary of this paper, and point out our future research directions. In this paper, the method of standardized options pricing theory and its applications were studied to determine the optimal investment decisions investment rules, and the optimal investment decision rules affecting factors were differences in the sensitivity analysis. Evidence obtained through rigorous and continuous investment in single case of optimal investment decision threshold and its scope, and enhance the scientific decision-making, decision-making on corporate investment has some practical value.

Related Dissertations

  1. Research on Real Options Models and Applications in China,F832.5
  2. Feasibility of Magnetic Resonance Imaging-guided High Intensity Focused Ultrasound Treatment for Adenomyosis: Early Experience,R711.4
  3. The Research on Evaluation and Decision-making of Venture Capital Project Based on Real Option Theory,F224
  4. Research on the Decision of Venture Capital Based on Real Options,F830.59
  5. Studies on the Application of Compound Real-Options in Venture Capital Valuation,F272
  6. Design and Implementation of Login and Management Module for N Nodes of NPV Switch System,TP311.52
  7. Study on the Valuation of the Listed Companies on GEM,F832.51
  8. The Pricing Analysis of a Class of Gold-linked Structured Products,F831.54
  9. Research on Related Problems of Straw Power,F426.61
  10. The Numerical Methods of Asian Option Pricing,F224;F832.5
  11. Research on Investment Decision Method in Oil Exploration Project Base on B-S Model,F272;F224
  12. A Game Model of the IPO Exit Choice in Venture Capital Based on the Different Conditions,O225
  13. The Operational Risks of Project Investments and the Corresponding Strategies,F272
  14. The Industrial Organization Analysis of Online-game Industry Based on SCP Paradigm,F224
  15. Study on Real Estate Portfolio Optimization and Investment Decision,F293.3
  16. Based on Real Option Performance Evaluation university researchers,F272;F224
  17. Spiral CT and its reconstruction in the lumbar spondylolysis diagnosis and treatment of the clinical value,R687.3
  18. Several exotic jump-diffusion model Actuarial Pricing,F840
  19. Actuarial Approach reset option pricing,F224;F840
  20. Research of Heterogenity FDI’s Effect on Technology Progress in China,F832.6;F224
  21. Analysis on the Application of Barrier Options in China Warrants Market,F224

CLC: > Economic > Fiscal, monetary > Finance, banking > Finance, banking theory > Investment
© 2012 www.DissertationTopic.Net  Mobile