The real options approach to valuation - Haskayne School of Business
The real options approach to valuation - Haskayne School of Business
The real options approach to valuation - Haskayne School of Business
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
Valuing American Op*ons by Simula*on: A simple least-‐squares <strong>approach</strong> • This condi*onal expecta*on is the key <strong>to</strong> being able <strong>to</strong> make op*mal exercise decisions. • Main idea <strong>of</strong> the <strong>approach</strong> is that the condi*onal expected value <strong>of</strong> con*nua*on can be es*mated from the cross-‐sec*onal informa*on from the simula*on by least squares. 30