Open AccessOPTIONS METHOD FOR OIL EXPLOITATION INVESTMENT PROJECT EFFICIENCY EVALUATION UNDER RISK CONDITIONS
Author(s) -
Julia A. Nikolova,
Larisa V. Skopina
Publication year - 2020
Publication title -
interèkspo geo-sibirʹ
Language(s) - English
Resource type - Journals
ISSN - 2618-981X
DOI - 10.33764/2618-981x-2020-3-1-159-167
Subject(s) - black–scholes model , volatility (finance) , valuation (finance) , valuation of options , work (physics) , investment (military) , environmental economics , computer science , natural resource economics , economics , financial economics , finance , engineering , mechanical engineering , politics , political science , law
In this work modern methods of investment project efficiency evaluation were studied, advantages and disadvantages of using the real option model were shown in comparison with the DCF model. It is proved that a rainbow option is an effective valuation tool in conditions of high oil prices volatility and low study of reserves and resource. Two stages may be identified: mineral exploration and maintenance work. Black-Scholes model was used for option pricing.