Broadly speaking, it is important to remember that the real options place the financial notions of time and volatility on the world of entrepreneurship.

Real options provide a complementary analysis to the evaluation provided by net present value (NPV), which does not take sufficient account of the flexibility of projects and situations of uncertainty.

The real options method is therefore an emerging approach, through which the consequences of a situation of uncertainty can be superimposed on the investment process.

This video will show you all the ins and outs. Listen carefully and at the end of the video, a button will appear allowing you to access the entire exercise you will have to do.

At the end of the exercise, you will be asked to view the video that gives you the solution of the exercise, a worksheet with the solution and additional information needed.

You can then move on to the viewing of the conclusion of this course!

Enjoy the video!