• Journal of Power System Engineering
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• v.22 no.1
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• pp.72-78
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• 2018

With growing concerns over air pollutions attributed to shipping activities, the international maritime organization has enacted a series of stringent regulations. In particular, MARPOL Annex IV Reg. 16 requires sulfur contents from exhaust gases of marine engines to be progressively reduced. To comply with this regulation, three feasible options have been introduced: using LNG as a marine fuel, using heavy fuel oil with the scrubber system, and using the marine gas oil (a type of low sulfur fuel oil). For the objectives of this paper, the holistic environmental impacts pertinent to these options were investigated and compared in ways that the flows of energy and emission were tracked and quantified through the life cycle of the ship. Research findings obtained from a case study with a large bulk carrier showed that the use of the scrubber system to purify heavy fuel oil would produce relatively fewer amounts of emissions attributing to global warming than other two options. On the other than, the use of LNG would be the way to operate the ship in a cleaner way in terms of reducing the acidification, eutrophication, and photochemical effects. Throughout the analysis, the excellence of life cycle assessment was proven to shift the environmental impact of marine systems from the short-term view to the long-term one.

• Journal of the Korean Data and Information Science Society
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• v.24 no.4
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• pp.737-753
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• 2013

Interest rate options embedded in life insurance products provide policyholders with minimum guaranteed rates credited to the corresponding surrender values. This paper discusses current low-interest environment and several types of interest rate options embedded in life insurance products. In addition, this paper shows profit structures of the life insurance products and calculates values of the interest rate options under stochastic interest model and the corresponding VaR (value at risk). Finally, some implications are discussed.

• Journal of Korea Game Society
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• v.11 no.5
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• pp.31-41
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• 2011

To sustain the competitive edges in the online game industry, many publishers invest online game developers at early stages. However, the fair value of online game developers at early stages cannot be calculated with traditional valuation methods due to the high level of uncertainties in technology and market. Based on the literature reviews, we recommended real options analysis for the proper valuation methods of online game developers at early stages, and compared it with other methods using "Bluehole Studio" investment case. The case study result showed that real options analysis is better in explaining the market value as expected.

• Nuclear Engineering and Technology
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• v.53 no.4
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• pp.1224-1235
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• 2021

An integrated waste management approach for irradiated graphite was developed during the European Commission project 'Treatment and Disposal of Irradiated Graphite and other Carbonaceous Waste'. This included the identification of potential options for the management of irradiated graphite, taking account of storage, retrieval, treatment and disposal methods. This paper describes how these options can be assessed using multi-criteria decision analysis (MCDA) for a case study relating to a generic power reactor. Criteria have been defined to account for safety, environmental, economic and socio-political factors, including radiological impact, resource usage, economic costs and risks. The impact of each option against each criterion has been assessed using data from the project and the wider literature. A linear additive approach has been used to convert the calculated impacts to scores. To account for the relative importance of the criteria, example weightings were allocated. This application has shown that MCDA approaches can be used to support complex decisions regarding irradiated graphite management, accounting for a wide range of criteria. Use of this approach by individual countries or organisations will need to account for the specific options, scores, weightings and constraints that apply, based on their national strategies, regulatory requirements and public acceptability.

• Asia-Pacific Journal of Business
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• v.12 no.3
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• pp.343-359
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• 2021

Purpose - The purpose of this paper is to investigate the relationship between earnings management and the disclosure effect of share repurchase. In addition, we analyze whether the relationship between earnings management and share repurchase is affected by executive stock options. Design/methodology/approach - We calculate the discretionary accrual amount for the year immediately preceding the share repurchase and the cumulative excess return around the announcement of the share repurchase, and examine the relationship between the two by regression analysis. Findings - We confirmed a negative relationship between discretionary accrual in the year immediately preceding the share repurchase and the market response to the share repurchase disclosure. In particular, it was found that the negative relationship between discretionary accrual and stock price return on share repurchase announcement was found to decrease in companies to which executive stock options were granted. Research implications or Originality - When uncertainties exist in the motives for share repurchase, we find that earnings management and executive stock options can be useful tools for reducing the adverse selection risk inherent in share repurchase announcements.

• Clean Technology
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• v.29 no.1
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• pp.59-70
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• 2023

This study aims to introduce a biowaste processing system that uses spent coffee grounds and implement a real options method to evaluate the proposed process. Energy systems based on eco-friendly fuels lack sufficient data, and thus along with conventional approaches, they lack the techno-economic assessment required for great input qualities. On the other hand, real options analysis can estimate the different costs of options, such as continuing or abandoning a project, by considering uncertainties, which can lead to better decision-making. This study investigated the feasibility of a biowaste processing method using spent coffee grounds to produce biofuel and considered three different valuation models, which were the net present value using discounted cash flow, the Black-Scholes and binomial models. The suggested biowaste processing system consumes 200 kg/h of spent coffee grounds. The system utilizes a tilted-slide pyrolysis reactor integrated with a heat exchanger to warm the air, a combustor to generate a primary heat source, and a series of condensers to harness the biofuel. The result of the net present value is South Korean Won (KRW) -225 million, the result of the binomial model is KRW 172 million, and the result of the Black-Scholes model is KRW 1,301 million. These results reveal that a spent coffee ground-related biowaste processing system is worthy of investment from a real options valuation perspective.

• Korean Journal of Construction Engineering and Management
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• v.18 no.2
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• pp.91-98
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• 2017

Due to climate change, countries around the world are actively investing in renewable energy, reducing fossil fuel use. 23.7% of world electricity is supplied by renewable energy. As the technology continues to develop, it is in a level to compete in terms of power generation cost, and investment conditions are improving. However, investment in renewable energy projects is not easy. This study analyzed trends of domestic and international researches on economics assessment applying real options analysis to investment decisions of hydro, solar, and wind power projects, which account for a large portion of renewable energy. This study provides (1) the difference between the traditional economic method and the real options analysis, (2) the application process, and (3) the uncertainty elements and option type of the renewable energy project presented by many studies. The real options analysis is suitable for the detailed investment strategy by considering the uncertainties of the renewable energy project and applying the option to improve the profit or to avoid the risk.

• Journal of Environmental Science International
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• v.21 no.1
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• pp.113-123
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• 2012

A unit emission reduction of nitrous oxide ($N_2O$) from anthropogenic sources is equivalent to a 310-unit $CO_2$ emission reduction because the $N_2O$ has the global warming potential (GWP) of 310. This greatly promoted very active development and commercialization of catalysts to control $N_2O$ emissions from large-scale stationary sources, representatively nitric acid production plants, and numerous catalytic systems have been proposed for the $N_2O$ reduction to date and here designated to Options A to C with respect to in-duct-application scenarios. Whether or not these Options are suitable for $N_2O$ emissions control in nitric acid industries is primarily determined by positions of them being operated in nitric acid plants, which is mainly due to the difference in gas temperatures, compositions and pressures. The Option A being installed in the $NH_3$ oxidation reactor requires catalysts that have very strong thermal stability and high selectivity, while the Option B technologies are operated between the $NO_2$ absorption column and the gas expander and catalysts with medium thermal stability, good water tolerance and strong hydrothermal stability are applicable for this option. Catalysts for the Option C, that is positioned after the gas expander thereby having the lowest gas temperatures and pressure, should possess high de$N_2O$ performance and excellent water tolerance under such conditions. Consequently, each de$N_2O$ technology has different opportunities in nitric acid production plants and the best solution needs to be chosen considering the process requirements.

• The Korean Journal of Financial Management
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• v.25 no.2
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• pp.69-101
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• 2008

We empirically investigate the option leverage property that should be priced under much more general conditions than the Black-Scholes assumptions and the option redundancy property that is based on the assumption that the underlying asset price follows a one-dimensional diffusion process and examine the systematic risk factors implied in the return dynamics of KOSPI 200 index options. We find that the option leverage pattern is similar to the theoretical result but the options are not redundant securities and in the nonlinear structure of option payoffs, the traders of KOSPI 200 index options price the systematic higher-moments and the negative volatility risk premium significantly affects delta-hedged gains, even after accounting for jump fears. But the empirical evidence on jump risk preference is less conclusive.

• Journal of Astronomy and Space Sciences
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• v.34 no.4
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• pp.331-342
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• 2017

To ensure the successful launch of the Korea pathfinder lunar orbiter (KPLO) mission, the Korea Aerospace Research Institute (KARI) is now performing extensive trajectory design and analysis studies. From the trajectory design perspective, it is crucial to prepare contingency trajectory options for the failure of the first lunar brake or the failure of the first lunar orbit insertion (LOI) maneuver. As part of the early phase trajectory design and analysis activities, the required time of flight (TOF) and associated delta-V magnitudes for each recovery maneuver (RM) to recover the KPLO mission trajectory are analyzed. There are two typical trajectory recovery options, direct recovery and low energy recovery. The current work is focused on the direct recovery option. Results indicate that a quicker execution of the first RM after the failure of the first LOI plays a significant role in saving the magnitudes of the RMs. Under the conditions of the extremely tight delta-V budget that is currently allocated for the KPLO mission, it is found that the recovery of the KPLO without altering the originally planned mission orbit (a 100 km circular orbit) cannot be achieved via direct recovery options. However, feasible recovery options are suggested within the boundaries of the currently planned delta-V budget. By changing the shape and orientation of the recovered final mission orbit, it is expected that the KPLO mission may partially pursue its scientific mission after successful recovery, though it will be limited.