TY - GEN AB - The Author shows that modelling the uncertain cash flow dynamics of an investment project deserves careful attention in real options valuation. Focusing on the case of commodity price uncertainty, a broad empirical study reveals that, contrary to common assumptions, prices are often non-stationary and exhibit non-normally distributed returns. Subsequently, more realistic stochastic volatility, jump diffusion, and Lévy processes are evaluated in the context of a stylised investment project. The valuation results suggest that stochastic process choice can have substantial implications for valuat. AU - Schöne, Max, CN - HB221 DO - 10.1007/978-3-658-07493-7 DO - doi ID - 723714 KW - Prices. KW - Value. LK - https://univsouthin.idm.oclc.org/login?url=http://link.springer.com/10.1007/978-3-658-07493-7 N2 - The Author shows that modelling the uncertain cash flow dynamics of an investment project deserves careful attention in real options valuation. Focusing on the case of commodity price uncertainty, a broad empirical study reveals that, contrary to common assumptions, prices are often non-stationary and exhibit non-normally distributed returns. Subsequently, more realistic stochastic volatility, jump diffusion, and Lévy processes are evaluated in the context of a stylised investment project. The valuation results suggest that stochastic process choice can have substantial implications for valuat. SN - 9783658074937 SN - 3658074930 T1 - Real options valuationthe importance of stochastic process choice in commodity price modelling / TI - Real options valuationthe importance of stochastic process choice in commodity price modelling / UR - https://univsouthin.idm.oclc.org/login?url=http://link.springer.com/10.1007/978-3-658-07493-7 ER -