Real options theory, a modern theory that explains how to make strategic investment decisions when the future is uncertain, is called real options theory. Real options theory draws parallels to the valuation methods of financial options and the real economy. This theory is a…
Speculative Investment- Explanation and example
A Speculative Investment is considered high risk, where the buyer is focused on price fluctuations. To profit from market liquidity price fluctuations, the investor purchases the tradable product (financial instrument). Someone who makes speculative investments is called a “speculative investor” or a Speculator. The…