Under Uncertainty Real Option Application Analyze In The Investment Decision-making

Some time ago "the capital" this noun always has been put on in our state the political color, however in this kind of knowledge and information time, in this kind of economic integration Earth village, people have abandoned so many ideologies domain difference, have entrusted with "the capital" this noun more economical meanings. Someone said: "Capital is no sense of loyalty to the country and nation, and it is always on a global scale search for the best investment environment and the highest return on their investment."As the pursuit of the return of capital investment, economists including investment as possible in order to obtain or an uncertain future value of the sacrifices made to determine the present value. This shows the current value is determined by the investment expense, and uncertainty of future revenue values. Then regarding the uncertainty future, how we will make reasonable and intelligent policy-making this has become the focal point which many investments material objects and the academic circles paid attention. But this master paper also is a discussion which makes the science reasonable investment decision-making regarding the uncertainty condition under using option thought method.This article from the introduction of uncertainty in the realistic economy, first had affirmed in the economy and the decision-making has massive uncertainty, this also is a main key in which this article discusses. In reality, the uncertainty affecting investment decisions from all. First introduced in the uncertain investment environment and the objective existence of a real option, from a qualitative perspective, the kind of investment options and the type and specificity of real options, discussed the differences of real options and financial options. Real Options stressed the investment decision is not only an objective reality existing flexible management and operational flexibility, more investment decision-making is a new way of thinking and analytical methods, but in reality many of the investment projects can be used to understand patterns of options.Any investment decisions always involve qualitative and quantitative analysis of two aspects. While affirming the existence of a real option, the paper continued to introduce a quantitative Black-Scholes Option Pricing Model, or binomial option pricing model and the dynamic programming model, giving real options quantitative analysis. From the Black-Scholes option pricing formula was presented his basic ideas, emphasizing binomial option pricing model is a more suitable method. And Dynamic...