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Why Real Options Is the Wrong Approach to Software Valuation

Posted May 18, 2004 | Leadership | Leadership |

A number of recent academic papers have attempted to apply real options to software design. Real options is the application of mathematical models from the world of financial options to real or non-financial assets. Because software developers lack a correct and intuitively comfortable way to value their projects, academics believe real options can help.

About The Author
Martha Amram
Martha Amram is an independent author and consultant. She is an expert on valuation and strategy, and is currently working as an independent consultant in the area of intellectual property valuation. Amram has had a wide range of business experience in management consulting, startup ventures, and academia. She is the author of Value Sweep: Mapping Corporate Growth Opportunities (HBS Press, 2002) and the coauthor with Nalin Kulatilaka of Real… Read More
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