July 10 Real Options

Arkadiy Sakhartov, Associate Professor of Business Administration, Gies College of Business, University of Illinois Urbana-Champaign

Synchronous session info:
Date: July 10, 2025
Start Time: 14:00 UTC (10:00 EST / 16:00 CET)
End Time: 15:20 UTC
Link: https://georgetown.zoom.us/j/99313919043?pwd=huivLfbwQDaS6ooRlhbTTm28bqQn9M.1
Meeting ID: 993 1391 9043
Passcode: 957 810

Resources

Files:

1. Setup of the problem that we will consider (MS Word)

2. Spreadsheet that we will use for solving the problem (MS Excel)

Background Reading:

1. Sakhartov, A. V., Mahoney, J. T., & Reuer, J. J., "Real options reasoning, real options pricing, real options...nothing: Twenty years after the real options debate."

2. Feldman, E. R., and Sakhartov, A. V. (2021). Resource Redeployment and Divestiture as Strategic Alternatives, Organization Science, 33(3), 926-945.

Post-Class Resources

Bellman Equation Slides (PowerPoint)

Spreadsheet with Problem Solution (MS Excel)