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Options (financial and real options)

Options convert risk into value. They are a mechanism to profit from or get protection for uncertain or risk events.

A financial option is "the right, but not obligation, to buy or sell an underlying security." A real option is analogous right with respect to business decisions.

Since options convert risk into value, they have wide-ranging applications, to business strategy and operations, project decisions, and many other activities.

Thywissen, John A. Options [Web page]. Plano (TX): c2007 [revised 2007 Aug 05; cited 2018 Jul 18]. Available from: http://john.thywissen.org/options.html


Natenberg, Sheldon. Option Volatility & Pricing: Advanced Trading Strategies and Techniques. McGraw-Hill; 1994. 470 p. ISBN: 155738486X.

888Options.com [Web site]. The Options Industry Council; c2007. http://www.888options.com/

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