Course Curriculum

E-books, modeling file downloads, and one-year software licenses are provided to support the 22 hands-on instructional videos (4.5 hours)

  • 1

    Welcome to the Course

    • Welcome to the Course (3 min)
  • 2

    Real Options Theory and Background

    • Introduction to Real Options (10 min)

    • Example Real Options Cases in Industry (15 min)

    • Financial vs. Real Options and Option Valuation Techniques (15 min)

    • Risk Neutral Probability (10 min)

    • Lattice Equations (15 min)

    • Solving a Basic European Call with BSM and Lattices (17 min)
  • 3

    Real Options Valuation and Modeling

    • Real Options SLS (12 min)

    • Option to Abandon [Custom Option with Changing Inputs] (15 min)

    • Option to Expand [Optimal Trigger Values and Optimal Timing] (15 min)

    • Option to Contract [Optimal Timing] (10 min)

    • Option to Choose [Dominant and Dominated Options] (12 min)

    • Volatility Estimation: The Five Approaches (15 min)

    • Intuition of Volatility (6 min)

    • Sequential Compound Options: Multiphased Options (12 min)

    • Modeling and Interpreting Complex Sequential Compound Options (7 min)

    • Exotic Options, Employee Stock Options, and Barrier Options (15 min)
  • 4

    Multinomial Methods and Case Examples of Real Options Modeling

    • Multinomial Lattices (Trinomial, Quandranomial, Pentanomial) (10 min)

    • Case: High-Tech Manufacturing (15 min)

    • Case: Expected Value of Information (15 min)

    • Case: Oil and Gas Farm Outs (8 min)

    • Case: Facility Expansion (7 min)

Course Professor

Dr. Johnathan Mun, Ph.D.

πŸ‘¨β€βš–β€Chairman of IIPER (USA), CEO of Real Options Valuation, Inc. (USA), Chairman of OSL Analytics Academy (UK)

πŸ› Professor at various universities globally and author of over 32 books and 13 patents. He is the founder, chairman, and CEO of Real Options Valuation, Inc. (ROV), a consulting, training, and software development firm specializing in strategic real options, financial valuation, Monte Carlo risk simulation, stochastic forecasting, optimization, decision analytics, business intelligence, healthcare analytics, enterprise risk management, project risk management, quantitative research methods, and risk analysis located in northern Silicon Valley, California. ROV has partners around the world including Argentina, Beijing, Chicago, China, Colombia, Ghana, Hong Kong, India, Italy, Japan, Malaysia, Mexico City, New York, Nigeria, Peru, Puerto Rico, Russia, Saudi Arabia, Shanghai, Singapore, Slovenia, South Africa, South Korea, Spain, United Kingdom, Venezuela, Zurich, and others. ROV also has a local office in Shanghai.

πŸ‘¨β€πŸŽ“ Ph.D. in Finance and Economics (Lehigh University, USA), MBA (Nova Southeastern University), BS in Physics and Biology (University of Miami).

πŸ‘¨β€πŸ« He taught and consulted on a variety of real options, risk analysis, financial forecasting, project management, and financial valuation issues for more than 100 multinational firms (current and former clients include 3M, Airbus, Boeing, BP, Chevron Texaco, Cubic, Financial Accounting Standards Board, Fujitsu, GE, Goodyear, Microsoft, Motorola, Northrop Grumman, Pfizer, Timken, U.S. Department of Defense, U.S. Navy, Veritas, and many others).

πŸ“š Research professor at the Naval Postgraduate School and visiting professor at various universities in Europe and USA.