Strategy, Value and Risk

JAMIE ROGERS is an Executive Director at The Weston Group, a merchant bank based in New York, USA. He has extensive experience in a range of areas that include valuation and risk management in the financial, energy and commodity markets, corporate finance and derivatives.

• List of Figures and Tables Preface Acknowledgements Introduction PART I THE EVOLUTION OF STRATEGY, VALUE AND MEASURING RISK Strategy: From Corporate Planning to Shareholder Value Valuation Investment Risk Five Shareholder Value Case Studies PART II DEVELOPMENTS IN STRATEGY, VALUE AND RISK MANAGEMENT Developments in Strategy Real Options Firm Value Risk Management PART III QUANTIFYING REAL OPTIONS 59 Derivatives Data Analysis Option Pricing Methods Implementing Real Options PART IV REAL OPTIONS CASE STUDIES AND PRACTICAL IMPLICATIONS Seven Strategic Real Options Case Studies Conclusion and Practical Implications References Index

'For the reader looking for a clear and concise introduction to real options, this book hits the spot. While the focus is on real options analysis, Rogers provides a pleasing blend of financial engineering, modern finance, and accounting-based valuation, all with the view of understanding the value from strategies and all under the eye of an informed, experienced practitioner' - Stephen H. Penman, George O. May Professor of Accounting, Columbia Business School, New York, USA "Real option theory represents an innovative approach to valuation. This book does a sound job of blending theory and practice. The inclusion of case studies is useful. The addition of material on corporate finance theory and financial statement in the Second Edition enhances the utility of the book." - Satyajit Das, Risk Consultant and Author "Jamie Rogers' compact treatment of real options invites managers to learn the field by studying its stories and successes, with just enough theory to demonstrate the rigor of thought beyond the case studies. No manager can fully understand modern strategy and valuation without some knowledge of real options, and this book provides a strong starting point." - David C. Shimko, Chief Risk Officer, NewOak Capital, New York, USA 'The idea that options exist in almost every decision scenario is intuitively sensible. What we need to do is recognize them, assess their value and include that value in the decision making process. This concise book effectively gets those two basic ideas over in a manner that can be understood by even the most mathematically-challenges executives.' - Maria Barbera, Innovations E-newsletter