Real Options SLS


It is standalone software with Excel add-in for analyzing and valuing real options, financial options, exotic options and employee stock options. With Real Options SLS, all inputs could be incorporated into custom spreadsheet models, allowing creating your own “à la carte” fully customized models, where all the mathematical equations and functions are visible. Consequently, option valuations and results are easier to understand and explain, especially, allowing users valuing to financial and real assets, quantifying flexibility, and mitigating uncertainty.

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Move beyond the academic papers and theoretical realm, and start applying real options with this new software. Real Options SLS is a standalone software and spreadsheet accessible add-in for analyzing and valuing real options, financial options, exotic options and employee stock options and incorporating them into custom spreadsheet models. The newly designed customized option modules allow you to create your own à la carte fully customized models, where all the mathematical equations and functions are visible, thus demystifying the approach and results, making them easier to understand and explain.

Solves Real Options such as sequential compound options, phased stage-gate options, and multiple asset options, with the combinations of options to abandon, barrier, choose, contract, expand, switch, wait and defer, and any user-specific customizable real options, with the ability to mix and match options (mutually exclusive and nested options)

Solves Financial Options including mixed multiple assets, benchmark options, warrants, convertibles, structured financial vehicles, combined with American, European, Bermudan and Asian options, and any make-your-own options

Solves Employee Stock Options with vesting, forfeitures, suboptimal exercise multiples, performance-based shares (external market or internal corporate), and make-your-own custom options

This is the same software used by the U.S. Financial Accounting Standards Board when creating their FAS 123R in 2004

You can create your own option models using predefined equations or your own equations, where a 1000-step binomial lattice can be computed in a few seconds (something that if done manually will take hundreds of years on a computer), and also has closed-form model benchmark models from Black-Scholes-Merton to other advanced closed-form American models

Available in English, Spanish, Japanese, Chinese (S), Chinese (T), Portuguese, Italian, French, German, Korean, Russian and has multiple language detailed User Manuals with sample case studies and step-by-step modeling techniques and solutions as well as 80 detailed example models

Runs Binomial, Trinomial (mean-reverting options), Quadranomial (jump-diffusion options), Pentanomial (rainbow compound options) models as well as over 300+ closed-form advanced options models (state-pricing models, analytical methods, volatility computations, variance reduction, American approximation models, options valuation via simulation techniques, all types of bond-options and convertible warrants, changing volatility options, other options-related models and much more!)

ROV Strategy Trees: ROV Strategy Tree is an easy-to-use module for creating visually appealing representations of strategic real options. This module is used to simplify the drawing and creation of strategy trees but is not used for the actual real options valuation modeling (use the Real Options SLS software modules for actual modeling purposes).

SLS is fully functional in Excel, where you can run Monte Carlo risk simulation on your option models, link to and from other existing Excel models, and apply other advanced analytics like Risk Simulator’s Monte Carlo simulation, optimization, stochastic forecasting and VBA macros

The generated lattices’ equations and functions in Excel are fully visible with a live model with links and equations…

It is a powerful options modeling learning tool

SLS is a fully customizable modeling tool, with the ability to enter in your own options equations

Leverage existing static NPV analysis to add financial sophistication including dynamic simulation, real options analysis, and optimization and you can use a framework for identifying, valuing, selecting, and prioritizing the right projects to gain additional insights into strategic value and management flexibility in decision making

You can correctly evaluate a project’s strategic intrinsic value and eliminate the possibility of undervaluing the strategic value of certain projects, identify, frame, and value future strategic opportunities, and incorporate new decisions over time, as opposed to NPV’s requirement that all decisions be defined at the outset by analyzing multiple strategic decision pathways, as opposed to NPV’s single decision pathway

The SLS software is a reliable, repeatable, and consistent process for decision making within a user-friendly software with powerful analysis tools to solve problems that cannot be otherwise solved

8 books on risk analysis, real options, and options valuation written by the software’s creator, a set of Training DVD on real options and risk analysis (simulation, forecasting, optimization, real options, and applied statistics).

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