Real Option Pricing for Financial valuation (asset managers)

[grecko]

Hey guys,
does anyone have/know of good software (preferably free) or spreadsheets for real options pricing valuations of companies.

we are going to get a bit arcane, but i am particularly interested in applying it to valuing asset management firms where possible...

 

[Andrew Fergus]

Hi

If you are interested in developing the methodology yourself then the Black and Scholes option pricing calculation has been provided in detail here:
http://www.riskglossary.com/link/black_scholes_1973.htm

See also here for additional information and links:
http://en.wikipedia.org/wiki/Black-Scholes

HTH, Andrew