Real option valuations of resources help investors and entities look upon financial decision making in a different light. Associated and in conjunction with Game Theory, option pricing requires careful thought in the processes of investing and the likely outcomes by the use of decision trees.  By observing what happens in the real world, we can alter our view of investing in risky assets, to reduce our downside risks and increase our probability of higher returns.

When one can put a value on the option to delay, continue, expand or abandon a resource project, many rejected projects come to life, and can yield surprisingly high net present values when all is considered.  These types of scenarios require that there be some exclusivity inherent in the asset and the decision to invest.  Like a patent, or royalty right, future actions need careful examination.

We at Vega are able to expand valuations by the addition of the option values.  By considering each case with or without any option value; these outputs can change finance decisions, considerably