Real Options in Real Estate

Business is the key to develop and improve the financial position of the people in the Sociality. The Real thinking is key to cater the needs of the people. The products be they estate, Property, goods of any kind, the customer has the always the choice to choose from the products of their need or choice. One cannot sell their product s by making huge claims regarding the usefulness of the product. The Customer has important role in the purchase of the Commodity. Similarity the real estate is such as business where customer takes the environment and location of the site in to consideration for their decision to purchase the Land . The Real estate has become the lucrative business in today world. in every Country there are real estate business vendors for selling and buy of the land in the Posh Areas of the Big cities and Towns.

What are Real Options?

Real options are the Real choices of the People to avail or purchase some products form the market. The real options may defines as :

"The first account is found in the writings of Aristotle. He tells of how Thales the Melesian, a sophist philosopher, divined from some tea leaves that there would be a bountiful olive harvest in six months' time. Having a little money, he approached the owners of some olive presses and bought the right to rent their presses at the usual rate. When a record harvest duly arrived and the growers were clamoring for pressing capacity, he rented the presses to them at above the market rate, paid the normal rate to their owners, and kept the difference for himself - proving for all time that sophism is not only an honorable profession, but a profitable one too". (Copeland & Keenan 1998)

Leons Trigeorgis, a leading authority on real options, defines the concept as:

"Similar to options on financial securities, real options involve discretionary decisions or rights, with no obligation, to acquire or exchange an asset for a specified alternative price