Friday, April 04, 2008

Real Options Spreadsheet in action: Foresight.co.uk "Exploiting the Electromagnetic Spectrum"

Foresight.co.uk is the British government's efforts at tracking, spotting and managing technological and scientific development. To value the cost and benefits of 'Exploiting the Electromagnetic Spectrum' they used Real Option Theory and tasked University of Manchester to develop a spreadsheet to calculate option prices of completing certain project milestones.

Link to the main page: "Foresight Real Options Model"

Link to the PDF Manual.

Link to the Option Calculator (Excel Spreadsheet).

Crack open the PDF manual and they'll explain clearly what all the cells do and how they relate to each other. Very insightful if you are thinking of developing a Real Option spreadsheet of your own.

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