Real Options
A set of examples files to illustrate real options of projects: 1. A model that illustrates the real option of abandoning a project at a...
Resources
All example models may be downloaded, modified, and distributed free of charge. You can use these as inspiration for your own models.
Please note all examples require @RISK or the appropriate DecisionTools software product installed to see the full analysis.
Legal Notice: Lumivero assumes no liability for your use (or inability to use) any of these examples. All models are provided as-is without warranty of any kind, and by downloading them you assume all risk for the use of and/or results generated from these models.
A set of examples files to illustrate real options of projects: 1. A model that illustrates the real option of abandoning a project at a...
This case study illustrates a potential implementation to quantify the probability of business continuity. It demonstrates a potential quantification of operating and risk register (low...
This case study illustrates a potential implementation of regulatory requirements to quantify the probability of business continuity. It demonstrates a potential quantification of operating and...
A multi-day model for determining when cash should be invested or cash should be obtained.
A capital budgeting model with uncertainty about projects' resource and capital usage and their NPVs.
This is a standard product mix model, where five product models must be assembled and then tested on either line 1 or line 2. You...
A portfolio optimization model that applies the Time Series Fit feature to historical stock price data.
An optimization model that balances groups of securities in a portfolio.
An optimization model for determining how to invest over a time horizon to accumulate a down payment for a house.
An optimization model for deciding how to invest over a multi-year horizon to achieve a retirement goal.
Two examples files to illustrate the "conditional value at risk" concept from finance. 1. A model to illustrate how to find the VaR and the...
A model for evaluating a contingent contract, where a penalty must be paid if a target is not met.
A model that illustrates the Time Series Fit and Batch Fit features for fitting multiple correlated stock price series.
A model for projecting future stock prices.
This simulation model follows a sample of 200 customers who each begin a year in a certain credit rating category and with a certain amount...
If you own a portfolio of investments, you know that there is a great deal of uncertainty about the future worth of the portfolio. The...
An example where extremes in a portfolio of stock options are compared using copulas versus correlations.
A basic portfolio model with correlated assets, including a comparison across different correlation values.
A portfolio model that uses the Time Series Batch Fit feature to project future stock prices from historical stock prices.
A model that illustrates options for hedging against exchange rate variability, using the Time Series Fit feature on historical exchange rate data.
A basic @RISK model where: 1. The uncertainty is essentially stationary through time. 2. The uncertainty changes through time because of business cycles. 3. The...
A Markov chain is a process observed through time where the probability distribution of the next state of the process, given the current state, is...
This model, really a template, is used to value European stock options: calls and/or puts. The model uses the well-known lognormal model of stock price...
Anybody who owns a portfolio of investments knows there is a great deal of uncertainty about the future worth of the portfolio. Recently the concept...
This model illustrates variance at risk (VAR) in the context of a put on a stock. It follows two portfolios: one where the investor purchases...
This simple model illustrates two ways variable interest rates on a loan might be simulated. In the first model, the yearly interest rates are generated...
This model illustrates how uncertainties can be built into a financial statement (income statement, balance sheet, cash flows) to make future projections.
