After reading this chapter, you will be able to understand
- the features of real options
- application of real options in capital budgeting
- application in research and development
- application in property development
- the option principles for portfolio investments
Mohan Bazaar, a department store, is planning to establish a super market in Bangalore. It costs ₹ 500 million to acquire a building for which an advance of ₹ 50 million ...