REAL OPTION
Monday, March 26, 2007
Couldnt stop thinking and smiling on the way back from uni today. These words keep coming back over and over again. He's right. Totally right. The good thing is, finally I found a shortcut to visualize the concept which would cost you time and effort to really pick it up. Well, at least it does cost me much coz me and Finance aint like girls and their very bestfriend, diamond (not that I've got heaps of it, but would love to have much of it hehehe). Where were we? Right, the concept. So my super duper cool lecturer Dr. George Wong (tell you next time what makes him the coolest lecturer at uni ever!), explained bout the theory of Real Option. I'm so not gonna take you thru what the theory is all about and stuffs, just wanna share that we, human being, are most prolly apply this theory in real life ie relationship. As the name may suggest, Real Option gives you the right to choose whether you wanna take a particular investment or reject it. You could also delay the investment if you think you dont have enough cash in ur pocket at the decision-making time. Dont you think it's the same thing as how we view a relationship? Well, I might say relationship is pretty much like investment. You wouldnt enter into a relationship if you knew that it wont generate positive return, right? Well, you might look the positive return from different perspective as I do, but in general, wouldnt it be the case that we're all facing? Oh, did I say the Real Option gives you right to delay the investment? Yep, that's what bastards actually do!!! Oh yes, you're right. I know this kinda people so very well. Here's what they do:

What could be more precious than this particular investment? Trillion of cash? Nah, people's heart is a priceless asset that shouldnt be taken for granted.


INNE ssstt.... |