Real Option Valuation of Mineral Exploration/Mining Projects using Decision Trees - Differentiating Market Risk from Private Risk
Only a few complex real options can be valued using closed-form equations, such as the Black and Scholes formula, because these algorithms are restrictive and prevent the construction of practical project evaluation models. Although a binomial lattice method paired with the 'risk-neutral probab...
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| Format: | Conference Paper |
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The Australasian Institute of Mining and Metallurgy
2012
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| Online Access: | http://hdl.handle.net/20.500.11937/27397 |