Study on the Application of Real Options in Coal Resources Investment

Abstract:

This paper uses the real options approach to conduct research on the coal resources development investment decision by literature studies, the combination of theoretical research and practical research. It has carried on the systematic overall retrospect to the domestic and international research results about real option. It introduces and analyzes the real option theory on the basis of analyzing and appraising to the traditional investment methods systematically in detail. This paper has studied the value of the investment project again with the real option theory. It sums up the application area, step and analyzing frame of real option theory, and analyzes the insufficiency of the traditional investment decision on the basis of comparing with traditional coal resource investment decision, and proposes some improvement suggestions.

• Periodical: Advanced Materials Research (Volume 978)
• Pages: 265-271
• DOI: https://doi.org/10.4028/www.scientific.net/AMR.978.265
• Online since: June 2014
• Authors: Wu Da, Wan Li Xing*
• Keywords: Coal Resources, Investment Decision, Real Options, Study

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