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REAL OPTIONS WITH MARKET RISKS AND PRIVATE RISKS

2002· article· en· W1999977754 on OpenAlexaff
António S. Mello, Unyong Pyo

Bibliographic record

VenueJournal of applied corporate finance · 2002
Typearticle
Languageen
FieldEconomics, Econometrics and Finance
TopicCapital Investment and Risk Analysis
Canadian institutionsBrock University
Fundersnot available
KeywordsActuarial scienceValuation of optionsBusinessMarket riskInvestment (military)EconomicsArbitrageFinancial economicsFinance

Abstract

fetched live from OpenAlex

Real investment decisions often include risks that are not priced in the capital markets. Valuing real options with private risks is not trivial. Private risks cannot be evaluated with arbitrage arguments used in option pricing techniques (OPT). This article values an option to defer a capital investment decision subject to market, as well as private risk. OPT only provides bounds on the value of this option, so an equilibrium approach is used to obtain consistent and precise estimates. The article addresses two other issues, often the subject of much debate: does private risk diminish the value of the option or enhance it, as does market risk? Does the real option's sensitivity to risk depend on the sequence between private and market risk and to which type of risk occurs first?

Fetched live from OpenAlex and de-inverted. Abstracts are not stored in this database: the inverted indexes are 8.6 GB of the frame’s 9.3 GB of text, and the host has 13 GB free.

How this classification was reachedexpand

Full frame machine prediction

Teacher imitation

Not calibrated prevalence, not ground truth. Human validation pending. The Gemma side is a direct model label for every work in the frame, read from the title-only record. The Codex side is a classifier learned from the 10,348 direct Codex labels and calibrated to design-weighted sample rates; fields without enough sample support carry no Codex call. Candidate is the union of the two sides; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels.

metaresearch head score (Codex)0.004
metaresearch head score (Gemma)0.020
Version: metacan-v3-hybrid-931329e0061cValidation status: machine_predicted_unvalidated
Candidate categoriesnone
Consensus categoriesnone
DomainCandidate signal: none · Consensus signal: none
Study designCandidate signal: Theoretical or conceptual · Consensus signal: Theoretical or conceptual
GenreCandidate signal: Empirical · Consensus signal: none
Teacher disagreement score0.005
Threshold uncertainty score0.021

Distilled classifier scores by category (both heads)

CategoryCodexGemma
Metaresearch0.0040.020
Meta-epidemiology (narrow)0.0010.000
Meta-epidemiology (broad)0.0010.001
Bibliometrics0.0010.001
Science and technology studies0.0010.005
Scholarly communication0.0040.010
Open science0.0010.002
Research integrity0.0030.004
Insufficient payload (model declined to judge)0.0050.001

Machine scores (provisional)

The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.

Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.

Opus teacher head0.085
GPT teacher head0.225
Teacher spread0.139 · how far apart the two teachers sit on this one work
Validation statusscore_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from it

Classification

machine, unvalidated

Machine predicted; a candidate call from one source (direct Gemma or distilled Codex), not a consensus.

The models applied no category: nothing in the taxonomy fit this work.
Study designTheoretical or conceptual
Domainnot available
GenreEmpirical

How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".

Quick stats

Citations0
Published2002
Admission routes1
Has abstractyes

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