Through theory and case studies, this book details how uncertainty and flexibility can be evaluated to assist in making better investment decisions in companies. It delivers an excellent balance of theory and practice in the area of investment decision making, demonstrates how financial and real options are related, and describes the theoretical underpinnings of both. The author presents case studies from diverse industries, including life sciences, pharmaceuticals, commodities, energy, technology, manufacturing, and financial services. He also looks at how organizations can become successful using a holistic framework that integrates uncertainty and flexibility.

Gill Eapen is the founder and managing principal of Decision Options, LLC, a boutique advisory services company. He developed Decision Options Technology, a software platform that allows modeling of complex decision problems and assets to improve decision making, risk management, and portfolio maximization. He also designed Decision Options Equity Research, an automated analysis and trading system for publicly traded securities. Eapen holds graduate degrees from the University of Chicago and Northwestern University and an undergraduate degree from the Indian Institute of Technology.

Although uncertainty and flexibility are important attributes that drive the value of an investment, they are seldom systematically considered in traditional financial analysis. Through theory and case studies, Decision Options: The Art and Science of Making Decisions details how uncertainty and flexibility can be evaluated to assist in making bett

Introduction. Decisions, Options, and Decision Options. Decisions as Predetermined Outcomes, Options, and Risks. Private Risks and Probabilities. Market Risks and Stochastic Processes. Self-Standing Options and Pricing of Options. Pricing of Decision Options. Employee Stock Options as Decision Options. Case Studies in Life Sciences. Case Studies in Technology and Manufacturing. Case Studies in Commodities. Case Studies in Financial Services. Misperceptions Regarding Real Options. Challenges to Decision Options Implementation and Possible Remedies. Past, Present, and Future. Index.