Real Options in Corporate Finance

BMAN70192 Real Options in Corporate Finance 15 Semester 2 Postgraduate Taught Level 7 Dean Paxson Unit coordinator Alliance Manchester Business School 1 FHEQ level (Framework for Higher Education Qualifications) ' Masters/Integrated Masters P4 ' European Credit Transfer & Accumulation System Rating : 7.5 <ul> <li> Basic Real Options</li> <li> Position Strategies</li> <li> American Growth Options</li> <li> Finding Enterprise Real Options</li> <li> Switching Options</li> <li> Debt Strategies</li> <li> Equity Strategies</li> <li> Real Options and Incentives</li> <li> Exam Tutorial</li></ul> <ul style="background-color: transparent; color: rgb(34, 34, 34); font-family: Arial,Verdana,sans-serif; font-size: 12px; font-style: normal; font-variant: normal; font-weight: 400; letter-spacing: normal; orphans: 2; padding-bottom: 0px; padding-left: 40px; padding-right: 40px; padding-top: 0px; text-align: left; text-decoration: none; text-indent: 0px; text-transform: none; -webkit-text-stroke-width: 0px; white-space: normal; word-spacing: 0px;"> <li style="background-color: transparent; color: rgb(34, 34, 34); font-family: Arial,Verdana,sans-serif; font-size: 12px;"> Basic Real Options</li> <li style="background-color: transparent; color: rgb(34, 34, 34); font-family: Arial,Verdana,sans-serif; font-size: 12px;"> Position Strategies</li> <li style="background-color: transparent; color: rgb(34, 34, 34); font-family: Arial,Verdana,sans-serif; font-size: 12px;"> American Growth Options</li> <li style="background-color: transparent; color: rgb(34, 34, 34); font-family: Arial,Verdana,sans-serif; font-size: 12px;"> Finding Enterprise Real Options</li> <li style="background-color: transparent; color: rgb(34, 34, 34); font-family: Arial,Verdana,sans-serif; font-size: 12px;"> Switching Options</li> <li style="background-color: transparent; color: rgb(34, 34, 34); font-family: Arial,Verdana,sans-serif; font-size: 12px;"> Debt Strategies</li> <li style="background-color: transparent; color: rgb(34, 34, 34); font-family: Arial,Verdana,sans-serif; font-size: 12px;"> Equity Strategies</li> <li style="background-color: transparent; color: rgb(34, 34, 34); font-family: Arial,Verdana,sans-serif; font-size: 12px;"> Real Options and Incentives</li> <li style="background-color: transparent; color: rgb(34, 34, 34); font-family: Arial,Verdana,sans-serif; font-size: 12px;"> Exam Tutorial</li></ul>  The course is for students interested in evaluating strategy and value in energy, property, environment, R&D, sports, banking and consulting. These businesses will be studied in terms of the real options that practitioners have identified. The “expected outcome” is that students will understand the basics of real options, and the practical applications to business opportunities. Each session will generally involve lectures and application to an appropriate industry or enterprise.  There will be tutorials in connection with your case/report.  Relevant practical cases are in Real Option Value On completion of this unit successful students will have achieved the following learning outcomes:•       An advanced knowledge and understanding of theoretical real option models•       A knowledge and understanding of research skills in real option applications•       Skills in collecting and analysing empirical data and in interpreting empirical results and, for voluntary projects, the ability to participate constructively in groupsThe methods of assessment for this unit allow students to demonstrate achievement of all intended learning outcomes.Useful outcomes may be employment as investment banker, wealth manager/adviser or real option strategist for active enterprises, extending project work to reality. 0 Other 100% Coursework (50%) Written group report (max 4000 words), or individual case (max 2000 words) Written Examination (50%)<o:p></o:p> <ul> <li style="margin-left: 5.7pt;"> Informal advice and discussion during a lecture, seminar, workshop or lab.</li> <li style="margin-left: 5.7pt;"> In-class exercises and quizzes </li> <li style="margin-left: 5.7pt;"> Verbal comments after students have given a group or individual presentation.</li> <li style="margin-left: 5.7pt;"> Formal Feedback on projects/cases two weeks after presentations, posted on BB and sent to project leaders.</li></ul> BMAN70141 Derivative Securities Pre-Requisite Compulsory BMAN70192 Pre-req: BMAN70141 Derivative Securities is a Pre-requisite for BMAN70192. BMAN70192 Programme Req: BMAN70192 is only available as an elective to students on MSc Accounting & Finance, MSc Finance and MSc Quantitative FinanceBMAN70141 Derivative Securities (or similar), Excel N Howell, S., A. Stark, D. Newton, D. Paxson, M. Cavus, J. Pereira and K. Patel (2001), Real Options: Evaluating Corporate Investment Opportunities in a Dynamic World, Financial Times Prentice Hall, London: ISBN 0 273 65302 4. Brach, M.A. (2003), Real Options in Practice, Wiley Finance, Hoboken: ISBN 0 471 26308 7. Paxson, Dean (2003), Real R&D Options, Butterworth-Heinemann, Oxford. ISBN 075-0653329. Patel, Kanak, Dean Paxson and Tien Foo Sing (2005), "Practical Uses of Real Property Options", RICS Research Papers, London. Paxson, Dean (2021), REAL OPTION VALUE, manuscript. Additional materials such as cases and possibly reading materials will be posted on BB, periodically. Assessment written exam 1.5 Lectures 22.5 0 130 Informal Contact MethodDean Paxson, AMBS 5.042, email for special office appointments, <a href="mailto:dean.paxson@mbs.ac.uk">dean.paxson@mbs.ac.uk</a>Groups will schedule meetings after class, or special appointments