GROWTH OPTION MODEL FOR OIL FIELD VALUATION

Authors

  • Ogunlade Temitope Olu

Keywords:

Real options, Brownian motion

Abstract

This paper considers the use of Real Option Approach (ROA) to value an oil field project. The Geometric Brownian Motion and the classic Black-Schole2019;s model is used to obtain the value of the fair price (option value F). We show that ROA is an invaluable tool in decision making in situations where investment involves high risk and uncertainty.

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How to Cite

Ogunlade Temitope Olu. (2011). GROWTH OPTION MODEL FOR OIL FIELD VALUATION. Global Journal of Computer Science and Technology, 11(10), 5–10. Retrieved from https://computerresearch.org/index.php/computer/article/view/748

 
GROWTH OPTION MODEL FOR OIL FIELD VALUATION

Published

2011-05-15

Issue

Vol. 11 No. 10 (2011): GJCST- Interdisciplinary: Volume 11 Issue 10

Section

Articles

License

Copyright (c) 2011 Authors and Global Journals Private Limited

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.