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Real options and investment under uncertainty pdf. 1 Introduction Using real options theory to account for the value of future development is now standard in ﬁnance among both academics , practitioners.
Inferences about the real options eﬀect of uncertainty on long run investment since they either amalgamate di ﬀering short , , long run impacts, introduce Jensen’s inequality eﬀects in to demand growth.
Their book shows the importance of the theory. Nbb working paper no.
22 may 2002 1 national bank of belgium working papers research series real options , investment under uncertainty:.