Real Options Mathematical Software Applications Real Options Mathematical Software Applications Mathematical software applications, like Mathcad, Mathematica, Matlab, and Mapple, are good tools for real options applications, with the advantage over spreadsheets and program language, for some tasks. This kind of software has some facilities that ease the solution of real options models, such as facilities for numerical integration, solution of differential equations, solution of non-linear system of equations, etc. See how to register software and licence fees . The following figures show the Mathcad language for the tanker example, including the two systems of non-linear equations solution. In the example this cost is negative, because the tanker has a positive scrap value.
P follow a geometric Brownian motion.
Troubleshoot Help For significant different data, may be necessary to modify the initial guesses. These type of system of equations can present more than one solution . It is possible that you find a mathematical solution but not the solution that makes sense in real options problem. In order to do this, just change the initial guesses. In more rare cases, its possible to have problem of convergence.