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The option pricing theory developed for finance is applied to the real world.
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Even in the real world, decision-making takes place in uncertain situations.
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This can be likened to trading in a situation where price fluctuations are uncertain
- net present value (Net Present Value, NPV) assumes that current intentions will continue into the future
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In reality, if new knowledge becomes available to move the project forward, we will change course. - At Lean Startup, we called it pivot and strongly encouraged it.
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Start small and stop as soon as you think it’s not working.”
- Equivalent to withdrawal option
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[《Real Options》 - ORWiki http://www.orsj.or.jp/~wiki/wiki/index.php/%E3%80%8A%E3%83%AA%E3%82%A2%E3%83%AB%E3%82%AA%E3%83%97%E3%82%B7%E3%83 %A7%E3%83%B3%E3%80%8B]
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TODO Find good references.
Limiting losses
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