Real Options Managing Strategic Investment in an Uncertain World

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Errata

 
  • p. 40, last line: replace $8.4 with $7.85
  • p. 41, Figure 3.3, legend: replace $8.4 with $7.85
  • p. 42, 4th line after the figure: replace 37% with 35%
  • p. 42, three lines above "The Option to Abandon": replace 9.59 with 9.63
  • p. 51. List in the middle of the page should have the changes noted in caps:
    2) Sell a put option with strike price of 0.90 cents.
    3) Buy a call option with strike price of $1.10.
  • p. 51, Figure 4.3. Legend. The underlined words need to be changed. (b) less a put option with an exercise price of 90 cents per pound (c) plus the call option with an exercise price of $1.10 per pound.
  • p. 116 Figure 8.4 (a). Horiztonal legend should be: Value of SunMedia in 6 months (delete "25% of ")
  • p. 119, Figure 8.6, internal legend near bottom of figure. S7 in formula should be replaced by S6: 29.37 = max[$50-S6,0]
  • p.139, Table 9.1 Numerical error in the final column of the table. The correct numbers are given in the attached ppt.
  • p. 146, 1st paragraph under The Results, line 5: "- 0.08" should be "- 0.23"
  • p. 146, 3rd paragraph under The Results, line 5: "1.33" should be "1.13".
  • p. 146, 3rd paragraph under The Results, line 5, line 7: numbers within parentheses: "$1.33" should be "$1.13". "-0.89" should be deleted.
  • p. 146, second line from the bottom. "$2.63 million" should be "$1.36 million."
  • p.182 Both equations should have the expression "Fuel cost in next month =" on the left hand side.
  • p.183, last paragraph, 4th sentence. Sentence should read "The currently lower-priced fuel, GAS, is selected..."
  • p.184, sentence continuing from P.183 should read:" The initial monthly profits are calculated at time T as revenues, R, minus the fuel cost, 1.04P GAS or P OIL.
  • p.184, strike first complete sentence, the one in parentheses.
  • p.184, Figure 16.2 A reader of the first printing pointed out an error in our notation. Please use the revised figure below.
  • p.184, Figure 16.2 , legend. Replace the last sentence that begins: "Time subscripts..." with "The notation has been simplified and omits discounting and expectations operators."
  • p.232, the author of Making Hard Decisions is Clemen, R., not Clemson, R.

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