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Move beyond the academic papers and theoretical realm, and start applying real options with this new software. Although written in programming code, SLS is a both a stand-alone software and spreadsheet accessible for analyzing and calculating real options and incorporating them into custom spreadsheet models. The newly designed customized option modules allow you to create your own à la carte models, where all the mathematical equations and functions are visible, thus demystifying the approach and results, making them easier to understand and explain. Some of the real options, financial options, and employee stock options solved include:
- American, Bermudan, Customized, and European Options
- Abandonment, Contraction, Expansion, and Chooser Options
- Changing Volatility Options
- Exotic Single and Double Barrier Options
- Financial Options, Real Options, and Employee Stock Options
- Multiple Underlying Asset and Multiple Phased Options
- Simultaneous and Multiple Phased Sequential Compound Options
- Specialized Options (Mean-Reversion, Jump-Diffusion, Rainbow)
- Standalone software with Excel add-in functionality (simulation and optimization compatible)
- Support materials: 5 books, training DVD, live courses, user manual, help file, extensive library of example files, sample business cases, and live project consultants
- Visible equations and functions
- Volatility computation models
- Plus any and all user-defined customized options
Benefits
Applying real options using SLS provides you with multiple advantages, including the ability to:
- Leverage existing static NPV analysis and add layers of sophistication including dynamic simulation, real options analysis, and optimization
- Use a framework for identifying, valuing, selecting, and prioritizing the right projects
- Gain additional insights into strategic value and management flexibility in decision making
- Correctly evaluate a project’s strategic intrinsic value and eliminate the possibility of undervaluing the strategic value of certain projects
- Identify, frame, and value future strategic opportunities
- Incorporate new decisions over time, as opposed to NPV’s requirement that all decisions be defined at the outset
- Analyze multiple strategic decision pathways, as opposed to NPV’s single decision pathway
- Use a reliable, repeatable, and consistent process for decision making
- Receive a significant savings over hiring expensive third-party consultants to perform real options analysis
- Use Monte Carlo simulation of risk variables
- Work in a user-friendly software with powerful analysis tools
- Solve problems that cannot be otherwise solved
Options Solved
- American, Bermudan, Customized, and European Options
- Abandonment, Contraction, Expansion, and Chooser Options
- Changing volatility and changing term structures
- Complex and Customized Simultaneous and Multiple Phased Sequential Compound Options
- Exotic Single and Double Barrier Options
- Financial Options, Real Options, and Employee Stock Options
- Multiple Underlying Asset and Multiple Phased Options
- Specialized Options (Mean-Reversion, Jump-Diffusion, Rainbow)
- Any and all user-defined customized option models
Algorithms
- Closed-form American and European option models
- Binomial lattices, trinomial lattices, quadranomial lattices, and pentanomial lattices
- Path-dependent simulations with the Risk Simulator software
Support Materials
- 5 books on risk analysis, real options, and options valuation written by the software’s creator
- Training DVD on real options and risk analysis (simulation, forecasting, optimization, real options, and applied business statistics)
- Live training courses on real options and risk management
- Detailed user manual, help file, and an extensive library of example files
- Live project consultants
Features
- A user-friendly interface
- A comprehensive User Manual, illustrating each module’s functionality with case examples and applications
- Short Strategic Business Cases illustrating real-life applications of real options, starting with the framing of the problem through to its software solution
- Multiple new approaches to calculating Volatility
- Ability to create Customized Options
- Visible Equations and Calculations in the customized options modules, allowing for Monte Carlo simulation, forecasting, and optimization, as well as linking and embedding formulas from other spreadsheets
- Compatible with Risk Simulator to run Monte Carlo simulation, forecasting, and optimization
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