154-9511/01 – Valuation and real options methodology application (OAMROa)

Gurantor departmentDepartment of FinanceCredits10
Subject guarantordoc. Ing. Miroslav Čulík, Ph.D.Subject version guarantordoc. Ing. Miroslav Čulík, Ph.D.
Study levelpostgraduateRequirementChoice-compulsory
YearSemesterwinter + summer
Study languageEnglish
Year of introduction2015/2016Year of cancellation2024/2025
Intended for the facultiesEKFIntended for study typesDoctoral
Instruction secured by
LoginNameTuitorTeacher giving lectures
CUL33 doc. Ing. Miroslav Čulík, Ph.D.
Extent of instruction for forms of study
Form of studyWay of compl.Extent
Full-time Examination 80+0

Subject aims expressed by acquired skills and competences

Aim of the course is to teach students to employ real option methodology in selected areas of financial decision-making. Course will enables the students: - to apply new approach for problem solutions of valuation and decisio-making, - to evaluate and compare its advantages in comparison to traditional methods, - to propose optimal decisions for a firm under the risk.

Teaching methods

Lectures
Individual consultations

Summary

Real options is a flexible approach for decision making on real assets, where assets are valued by using financial option pricing models. The main idea relies on the possibilities to make future decisions with option characteristics and can be exercised under pre-specified conditions. It is necessary to identify these options, value them and comprise them into company decision-making process.

Compulsory literature:

DiLELLIO, James: Real Option Modeling and Valuation: A Decision Analysis Approach Using DPL and Excel. London: ‎ Independently published, 2018. 136 pp. ISBN 978-1521238592. MUN, Jonathan: Real Options Analysis: Tools and Techniques for Valuing Strategic Investments and Decisions with Integrated Risk Management and Advanced Quantitative Decision Analytics. London: ROV Press, 2016. 695 pp. ISBN 978-1734497359. MUN, Jonathan: Applied Analytical - Applied Project Management: Applying Monte Carlo Risk Simulation, Strategic Real Options, Stochastic Forecasting, Portfolio management, Project Management.‎ ‎New York: IIPER Press, 2020. 143 pp. ISBN 978-1734481150.

Recommended literature:

JACKSON, Liam, et al. Applied Analytical - Oil and Gas Decommissioning Risk Management: Applying Monte Carlo Risk Simulation, Strategic Real Options, Stochastic Analytics. London: IIPER Press, 2020. 266 pp. ISBN 978-1734481174. LARRABEE, T. a J. VOSS. Valuation Techniques: Discounted Cash Flow, Earnings Quality, Measures of Value Added, and Real Options. New York: Wiley, 2012. 624 pp. ISBN 978-1118397435. SCHONE, M. Real Options Valuation: The Importance of Stochastic Process Choice in Commodity Price Modelling. Berlin: Springer, 2015. 118 pp. ISBN 978-3658074920.

Additional study materials

Way of continuous check of knowledge in the course of semester

oral examination

E-learning

Other requirements

There are no other requirements on students.

Prerequisities

Subject has no prerequisities.

Co-requisities

Subject has no co-requisities.

Subject syllabus:

The objective of the course is to provide knowledge about advanced valuation methods and techniques applicable in company´s financial decision-making. The course is focused on the assumptions, conditions and application possibilities for solution of valuation and decision-making issues by applying real option methodology, when risk and managerial flexibility is taken into consideration. Attention is primarily paid to the description basic types of real options, their parameters and valuation procedure. Due to the specific features of real options, there are discrete models used for their valuation.

Conditions for subject completion

Full-time form (validity from: 2015/2016 Winter semester, validity until: 2024/2025 Summer semester)
Task nameType of taskMax. number of points
(act. for subtasks)		Min. number of pointsMax. počet pokusů
Examination Examination   3
Mandatory attendence participation:

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Conditions for subject completion and attendance at the exercises within ISP:

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Occurrence in study plans

Academic yearProgrammeBranch/spec.Spec.ZaměřeníFormStudy language Tut. centreYearWSType of duty
2022/2023 (P6202) Economic Policy and Administration (6202V010) Finance P English Ostrava Choice-compulsory study plan
2021/2022 (P6202) Economic Policy and Administration (6202V010) Finance P English Ostrava Choice-compulsory study plan
2020/2021 (P6202) Economic Policy and Administration (6202V010) Finance P English Ostrava Choice-compulsory study plan
2019/2020 (P6202) Economic Policy and Administration (6202V010) Finance P English Ostrava Choice-compulsory study plan
2018/2019 (P6202) Economic Policy and Administration (6202V010) Finance P English Ostrava Choice-compulsory study plan
2017/2018 (P6202) Economic Policy and Administration (6202V010) Finance P English Ostrava Choice-compulsory study plan
2016/2017 (P6202) Economic Policy and Administration (6202V010) Finance P English Ostrava Choice-compulsory study plan
2015/2016 (P6202) Economic Policy and Administration (6202V010) Finance P English Ostrava Choice-compulsory study plan

Occurrence in special blocks

Block nameAcademic yearForm of studyStudy language YearWSType of blockBlock owner

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