Monte Carlo valuation of the option to expand with application in multi-storey car parking

• Authors: Pawlak Marcin
• Languages of publication: PL EN

Abstracts

EN

The aim of this paper is to present the application of Double Monte Carlo Simulation (2MC) in the valuation of investments containing the growth option. Paper presents a procedure for constructing a valuation model along with methods of identifying input and key-decision variables. Presented methodology is applied to valuation of expansion option in a multi-storey car park at Bluewater mall. Paper finishes with an interpretation of the valuation results and is summarized with conclusions on used methodology.

Keywords

EN

Real Options; Monte Carlo Simulation; project valuation

• Publisher: Uniwersytet Ekonomiczny we Wrocławiu. Wydawnictwo Uniwersytetu Ekonomicznego we Wrocławiu
• Journal: Prace Naukowe Uniwersytetu Ekonomicznego we Wrocławiu
• Year: 2017
• Issue: 482
• Pages: 216-226

Contributors

author

Pawlak Marcin