Real Options: The Option to Expand

[@VeroniaGergis]

I know I've said it before but I am going to say it again, you are the one who makes me love finance.. Actually even accepting it at the first place.. I was lost!.. Currently 3 years later and befause of your first video on this channel I am going to participate in the CFA research analyst challenge I actually pass the first stage which was academic assessment hopefully I will pass the 2nd stage (a personal interview).. Thank you, sir Atef I owe you a lot🙏🏻..

[@professorikram]

Thank you for such a thoughtful comment Veronia! Wish you all the best on your journey. If you every feel lost/confused and don't find the answer to your finance-related questions in any of my videos, feel free to reach out.

[@marcusms8185]

Any updates of how things turned out?

[@nillile]

Hello prof, do you have a video where you explain the option to delay / wait in order to figure out if its high or low demand?

[@saufari]

Very helpful, thank you for making this video!

[@miguelcalvache706]

Thanks great video. However, it seems as all the projects would be good if they have at least one alternative with positive NPV, even if it has a very low probability of occurence. I mean, it is just matter of multiplicating it by a number of expanding options that surpases the negative scenarios. Lets say if the positive option has very low NPV and/or probability, I just say that I can expand the business 1000 times and at the end it will surpases the negative scenario because it doesn't expand. Also another constructive critisism is that in the case that I realized that it is a good business (optimistic scenario), why would I discount the negative scenario? I mean, if I already realized that is a good business and I want to expand it 10 times, I think the NPV will be the 3 x 10 m = 30m. Why would I substract the negative scenario that I already know is not going to happen? Thanks in advance to clarify these issues.

[@asalasadi1035]

great

[@salomon0991]

Thank you very much.

[@elinadiary9357]

Thank you sir

[@WofaiswimmingAcademyAbuja]

I love expand option 😘

[@salomon0991]

I think white background is better.