We propose using a real options framework to quantify the financial value of cross training. We model the investment decision in cross training as a series of European call options with the same exercise price but with different maturity dates. We use the Black-Scholes formula and the binomial tree approach to find the value of having the option to cross train. A case study shows the applicatio...

Planning and design procedure of an open pit mining project just can be started after ultimate pit determination. In the carried out study in this paper it was shown that the most important factor in ultimate pit determination and in consequence in the whole planning and design procedure of an open pit mine is the metal price. Metal price fluctuations in recent years were exaggerated and impose...

Real option analysis has been studied and applied in evaluating information technology (IT) investments for more than a decade. Its advantages over the traditional discounted cash flow techniques have been widely recognized in the information systems (IS) community. However real option analysis has yet to be seen in valuing digital government projects where the real option analysis and option t...