Unit 5: Options


Option Pricing Theory

Origins of Option Pricing Theory

What is an Option

Valuation of Options

The Role of p

Multiperiod Extension

Real Options and Biomedical Examples


Real Options

Decision Trees

Monte Carlo Simulations

Monte Carlo Primer

Monte Carlo Simulation Example

How Many Simulations Do We Need?

Solved Practice Problems

Timing Option Example

Pharmaceutical R&D Example 1

Pharmaceutical R&D Example 2

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