[01] George Rigopoulos, George Rigopoulos, Department of Informatics, Technological Educational Institute (TEI) of Athens, Athens, Greece.

This paper reviews real options pricing methods and refers to relevant literature highlighting their main points. An overview on real options is presented initially and next the pricing methods that have been proposed so far is introduced. The main objective of the paper is to demonstrate the plurality of the approaches which along with the complexity of the methods leads to increasing sophistication and thus reduces intuition among practitioners. It also highlights some of the criticism found in relevant literature against real options and as conclusion discusses possible remedies to assist real options’ adoption.

Real Options, Pricing Models, Investment Appraisal, Capital Budgeting

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