Session 23: The Option to Delay

In today's class, we turned our attention to the option to delay, an option that can make the rights to bad project/technology valuable. We used it as a lever to talk about valuing patents and natural resource reserves as options, with significant caveats on both. After the quiz on Monday, we will continue with this discussion of real options. I mentioned a paper I have on real options. If you are interested, you can find it here:

Start of the class test:
Slides:
Post Class Test:
Post Class Test Solution:

Valuation,