Real option and Recourse: Difference between pages

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Real options are the valuable operational choices available to the owners of projects and of businesses.
1. ''Law''


For example, the options to expand, contract, defer or abandon the project (or business).
A right of redress should a bill of exchange or other debt be dishonoured at its maturity.  


For example, a claim against an earlier holder of the bill.


The existence of valuable real options in favour of the owners generally increases the total value of a project or business.


For this reason a real options analysis of a proposal may in some cases result in a decision to proceed with the project, in circumstances where other project evaluation techniques would have led to rejecting the proposal.
2.  


 
More generally, seeking assistance or help from a third person or entity.
However, it is also possible that a proposal may grant real options - perhaps inadvertantly - in favour of other parties.
 
In such a case, the other parties might in future exercise their real options ''against'' the interests of the owners, causing losses to the owners.
 
Such real options in favour of other parties are ''liabilities'' of a project or business, and ''reduce'' the total net value of the project or business.




== See also ==
== See also ==
* [[CertFMM]]
* [[Acquirer]]
* [[Option]]
* [[Bill of exchange]]
* [[Project appraisal]]
* [[Factoring]]
* [[Real]]
* [[Forfaiting]]
* [[Real options valuation]]
* [[Limited recourse]]
* [[Expansion option]]
* [[Non-recourse]]
* [[Deferment option]]
* [[Project finance]]
* [[Contraction option]]
* [[Recourse finance]]
* [[Termination option]]
* [[Payments and payment systems]]
* [[Abandonment option]]
 
 
=== Other resources ===
* [[Media:2015_07_July_-_Hidden_treasure.pdf| Hidden treasure, The Treasurer, 2015]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Corporate_finance]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Financial_products_and_markets]]
[[Category:Trade_finance]]

Revision as of 13:22, 26 February 2021

1. Law

A right of redress should a bill of exchange or other debt be dishonoured at its maturity.

For example, a claim against an earlier holder of the bill.


2.

More generally, seeking assistance or help from a third person or entity.


See also

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