Real Options and Strategy


Alexander Bukhvalov, Professor,




45 hours of classes


Major, concentration: 

Management: Financial management, International management, Marketing



Financial Management


Aim of the Course:

This course is devoted to strategic treatment of uncertainty. The concept of the real options analysis (ROA) provides both theoretical framework and workable instrument of decision making. The course is aimed to teach students how to find and to design real options as managerial decisions, which give companies the opportunity to use positive situations and to avoid bad ones.


Course Content:

Topic 1. Introduction to Real Options Analysis (ROA) 

Topic 2. The basic example and valuation

Topic 3. Valuation and decision making

Topic 4. Real options and strategy design

Topic 5. Survey of ROA and its applications. Group presentation


Teaching Methods:

Lectures, class discussions, homework, group presentations, case discussions.


Course reading:


1. Brealey R.A. and  S.C. Myers. Principles of Corporate Finance. 7th ed.. McGraw-Hill, 2003. Chapters 20–22.

2. Brealey R.A., S.C. Myers, and F. Allen. Corporate Finance. 8th ed.. McGraw-Hill, 2006. Chapters 20–22.

3. Grinblatt M. and S. Titman. Financial Markets and Corporate Strategy. 2nd ed.. McGraw-Hill, 2002. Chapter 12.

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