23 Overseas Oil Exploration Fan and Zhu (2010) propose a real options framework to value oil exploration

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23 Overseas Oil Exploration Fan and Zhu (2010) propose a real options framework to value oil exploration projects in the presence of three sources of uncertainty: the overseas investment environment, the exchange rate and the oil price. Explain how the real options methodology can aid in investment evaluation for these types of projects.

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Corporate Finance

ISBN: 9781526848093

4th Edition

Authors: David Hillier

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