The theory of real options is one of the latest developments of option theory, which is derived from the financial option pricing theory and the extension of financial option theory in physical (non-financial) asset options. Real Options, first proposed by Myers (1977), noted that an enterprise's investment in physical assets could be seen as a right to acquire a physical asset or investment project at a certain price in the future, so that the value of a physical asset investment could be assessed in a similar way as an assessment of general options, and because its underlying nature was physical assets, it was called an option in kind, creating a "real option" (Real. Option) this term, formally put forward the concept of real options.
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