2024

Real Options

Name: Real Options
Code: GES12548M
6 ECTS
Duration: 15 weeks/156 hours
Scientific Area: Management

Teaching languages: Portuguese
Languages of tutoring support: Portuguese

Sustainable Development Goals

Learning Goals

Objectives:

• To allow the knowledge of the general thematic framework and basic choices of real investment decisions.
• To enable the detection and implementation of real options.
• To understand and apply the evaluation models of real basic choices.

Skills:

Intellectual skills:
• Ability to work in multidisciplinary teams in the investment decisions evaluation;
• Capability of making decisions and solving problems related to evaluation and implementation of investment projects.

Practical skills:
• Ability to identify, plan and conduct proceedings to implement the real options methodologies and interconnection with the decision-making investments processes.

Interpersonal skills:
Ability to communicates and perceives the necessary ideas and information for the implementation of methodologies for valuation of investments with real options.

Contents

Module 1 - General aspects of investment decisions.

Module 2 - The valuating investments models in deterministic conditions and in risk and uncertainty conditions - Critical Analysis.

Module 3 - Analogy between the financial option definition and the investment decision. Real options definition and types.

Module 4 - The procedure for identifying real options and their quantification.

Module 5 - Real options valuation methodologies.

Teaching Methods

In this curricular unit will be used the following methodologies:

o Theoretical-practical lectures;
o Indication of the readings that the students will use for preparation of its study at the level of basic bibliography;
o Resolution and discussion of cases in room;
o Accomplishment of a work group;
o Use of the platform of e-learning in way to establish a larger contact and interactivity with the students.

The final grade will be obtained by the following:
o A group work (maximum 4 students), Ponderation of 50%.
o Written test to accomplish individually, it will cover the whole matter of the discipline. Ponderation of 50%.

Teaching Staff (2023/2024 )