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This paper considers the use of Real Option Approach (ROA) to value an oil field project. The Geometric Brownian Motion and the classic Black-Schole’s model is used to obtain the value of the fair price (option value F). We show that ROA is an invaluable tool in decision making in situations where investment involves high risk and uncertainty.
Ogunlade Temitope Olu. 1970. \u201cGROWTH OPTION MODEL FOR OIL FIELD VALUATION\u201d. Unknown Journal GJCST Volume 11 (GJCST Volume 11 Issue 10): .
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Total Score: 107
Country: Nigeria
Subject: Uncategorized
Authors: Dr. Ajayi kehinde, Ogunlade Temitope Olu (PhD/Dr. count: 1)
View Count (all-time): 121
Total Views (Real + Logic): 20894
Total Downloads (simulated): 11086
Publish Date: 1970 01, Thu
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This paper considers the use of Real Option Approach (ROA) to value an oil field project. The Geometric Brownian Motion and the classic Black-Schole’s model is used to obtain the value of the fair price (option value F). We show that ROA is an invaluable tool in decision making in situations where investment involves high risk and uncertainty.
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