Customer Reviews

Dealmaking Using Real Options and Monte Carlo Analysis

5 star:		(2)
4 star:		(0)
3 star:		(1)
2 star:		(0)
1 star:		(1)

 

 

There are only 3 out of 12 pertinent chapters of this book. The other 9 chapters are an extraneous rambling to take up space on paper. The author even goes as far in this irrelevant material to discuss topics such as art collecting. The pertinent chapters are not useful because of misapplied theory. For example, the author does not present the Black-Scholes methodology correctly and improperly defines profitability of an "in-the-money" option. To me this is a marketing ploy through Decisioneering.

I recommend books by Johnathan Mun, Robert Hull, Richard Brealey, and the CBOT.

The title made buying the book interesting, but I was kind of disappointed when I purchased the book. For someone with a good quantitative background or some real experience dealing with real options and monte carlo simulation, this book would prove to be frustrating. It takes shortcuts by using (to the point of promoting) the Crystal Ball software by Decisioneering. Unfortunately, the book doesn't come with a trial software of Crystal Ball like some other real options books, so you only have to rely on the pictures in the book. Aside from this, the discussion of many topics is very watered-down. The author doesn't go in too much depth, and there is not much takeaway from this book. I suggest buying a different book for your needs.

While preparing for a negotiation the objective is to identify risks and rewards. During the negotiation it is to capture value while finding terms value-enhancing terms agreeable to all parties.

Richard Razgaitis combines Real Option Analysis and Monte Carlo Analysis to provide practical tools and procedures. Used properly, these models will provide data that will assure quick, predictable and reasonable outcomes.

While preparing for a negotiation the objective is to identify risks and rewards. The point of the negotiation is to capture value while finding terms value-enhancing to all parties.

Richard Razgaitis combines Real Option Analysis and Monte Carlo Analysis to provide practical tools and procedures. Used properly, these models will provide data that will assure quick, predictable and reasonable outcomes.