2003•煤炭学报：英文版Requires access
The application of option pricing theory to the evaluation of mining investment
张能福, 蔡嗣经, 刘朝马, 唐瑞
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Abstract
A rational evaluation on an investment project forms the basis of a right investment decision-making. The discounted cash flow ( DCF for short) method is usually used as a traditional evaluation method for a project investment. However, as the mining investment is influenced by many uncertainties, DCF method cannot take into account these uncertainties and often underestimates the value of an investment project. Based on the option pricing theory of the modem financial assets, the characteristics of a real project investment are discussed, and the management option of mine managers and its pricing method are described.