2.0

credits

Average Course Rating

In this course we draw from Economics, Monte Carlo Simulation, and Decision Theory to build a framework for the assessment and control of quantifiable risks. In the process we introduce the logic of real options and analysis of contingent claims. From this base we cover several classic problems including retirement planning, insurance valuation, market entry, and product introductions. The unifying theme is the application of rigorous approaches to thinking through "optionality" in the real world as a means to manage risks.