I just stumbled across this article from 2005: http://www.ibm.com/developerworks/rational/library/nov05/mckenna/index.html I've only skimmed it but it looks...
Real Options has been kicking around the Value-based Software Engineering (academic) community for at least 5 years probably a whole decade. The book Value...
Dear All For the past few years I've believed that an option cannot have a negative value. It has been suggested that it is possible for an option to have a...
If you factor in the carrying costs (physically and/or mentally), many options have negative value, don't they? I'm not going to carry a bottle of water that...
Surely if an option is out of the money, it won't be exercised so its value is exactly 0. That asymmetric payoff is fundamental to what an option is. I think...
Hi Nick, A real option can certainly have a negative value. When we are talking about financial options you are right, as soon as the option is out of the...
I don't get this. If the option is out of the money, the value isn't zero, but negative whatever the option cost to buy / maintain / check. Why are we ignoring...
I think the options are only negative compared to your current situation, but at the time you exercise the options you are in a different place. If they're...
Hi Olav I don't know much about real options - I'm here to learn! - but to my mind, coming from a financial background, in this situation the two possibilities...
I'm rephrasing what you are saying in my own words to see if I understand you correctly. Please confirm or correct me if my understanding is wrong. The values...
Yes, that sounds about right. An option is the ability to choose between possibilities. The value of the possibilities (hence the value of the option) depends...
For the sake of argument, would the following scenarios be equivalent? 1) It's Friday at the end of the day. Your boss tells you starting Monday, you must...
Hi, In finance, options are mainly in the form of calls and puts which are financial options which give the holder a choice of whether to do something (buy /...
Hi, In finance, options can take the form of calls or puts which is a choice between to do something (buy or sell) or not to do something (do not buy or do not...
Hi, I suspect the 2 scenarios are not totally equivalent  your legal rights may be different, for example, depending on what employment laws apply. Thinking...
Graham I concur. A few years ago I worked in a department where it was announced that the department would merge with another. I sat down and worked out a ...
Josephine, et al, ... Another complicating factor is that the "keep job at lower salary" comes with a maintenance cost (your time) that the "get fired" does...
I dont see these as negative examples. If you make the third option explicit, not having a job, you see Please forgive if this came across short or poorly...
Folks, Just a reminder that if you'd like to present at the Lean Software & Systems Conference in Long Beach, California next May 4-6 then you have just one...
I've come up with a simple mnemonic and pictures of different kinds of options. Can you see any use for this? Might it be possible to draw some kind of options...
Hi David, Have tried applying this to some real world product development examples? I'm interested in seeing this in action. Robin Dymond, CST Managing...
When you ask if I have applied this, what are you referring to? I haven't applied the diagrams, but I definitely apply options-thinking. Recently, we were...
Hi David, If you were to apply these diagrams ideas what would it look like? I am sure you had some reasons for creating a notation, so I am interested in...
Hi David and Robin, The diagrams that David created can be used to develop the simplest sort of circuits for real options valuations decisions usually referred...
Hi David / Robin, The diagrams that David created can be used to develop the simplest sort of circuits for real options valuations decisions usually referred...
Hi David / Robin, The diagrams that David created can be used to develop the simplest sort of circuits for real options valuations decisions usually referred...
Sorry bad typing on phone. If you blog again on this idea I would be interested in seeing you apply it and your analyses of how it helped or not. Generally I...
... Hmm... I like the symbols a lot, however, I am not yet sure how to apply these in the dev process. From my experiences with integrated circuits, schematics...
