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Real Optionsin a nutshell 

Olav MaassenQNH

Chris MattsAccellinnova

 © alisdair

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Real Options:

 And how do they improve your life?

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The Game

 © jimmyrog

 © fatal Cleopatra

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Risk

Time

Agile

 © thelastminute

Source: Kevin Tate, Alias Software

Risk

Time

Waterfall

 © - Woo -

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An Arbitrage(Free Money)

 © wilhei55

 © moonpix7

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Optionseverywhere

 © Justin Russell

 © tvol

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• Price dro s to $90 • Price oes to $110

100.000 (+/- 5%) barrels of oil for $100 / barrel

Total value: $10.000.000

 

• 95.000 barrels

• Cost saving: $10 * 5.000

 

• 105.000 barrels

• Extra profit: $10 * 5000

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• Price dro s to $90 • Price oes to $110

100.000 (+/- 5%) barrels of oil for $100 / barrel

Total value: $10.000.000

 

• 95.000 barrels

• Cost saving: $10 * 5.000

 

• 105.000 barrels

• Extra profit: $10 * 5000

95.000 barrels plus the option to buy

10.000 more

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Financial OptionsEmbedded Options

Maths

FinancialMaths

Real Options

Information

 © Striker W@SP

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Black Scholes…..A House of Cards

 © janetmck

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Oops!

 © shaymus022

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Never commit

early unless youknow why

Options have

value © luismi1985

Options expire

 © givepeasachance © Tub Gurnard

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1. Right2. Wrong3. Uncertainty

 © Bethany L King

 © Violator3

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A or B?

Maths

WWW.

Grid

 © The Nug

 © Uninen

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 © TAudiophile

 © lucadex

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 © codyR

 © Hamedog

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 © elliottcable

 © whitneybee

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STOP

Guessing!

 © topher76

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Create Options

 © haydnseek

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Prepare to run fast.

 © James Temple

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……and have fun. © lordkirbs

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Q&A

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Further Reading:

Article: “Real Options” underlie agile practiceshttp://www.infoq.com/articles/real-options-enhance-agility

Contact Information:

Olav Maassen (olav.maassen@decision-coach.com)

Chris Matts (chris.matts@gmail.com)

All photo’s are licensed under the Creative Commons license by their respective owners.Pictures are taken from flickr.com