NVIDIA Company Valuation under the Risk and Flexibility Based on the Real Options Method

Abstract

In this thesis，our goal is to apply real options theory in a risk-neutral world to evaluate NVIDIA's valuation under uncertain market conditions. We give the classification of real option, and introduce two kinds of option pricing models, namely Black-Scholes model and binomial model. Finally, we use binomial model to get the real option valuation of NVIDIA company.

In this thesis，our goal is to apply real options theory in a risk-neutral world to evaluate NVIDIA's valuation under uncertain market conditions. We give the classification of real option, and introduce two kinds of option pricing models, namely Black-Scholes model and binomial model. Finally, we use binomial model to get the real option valuation of NVIDIA company.