The application of compound option method to the project evaluation;

This paper introduces the basic conception of compound option and studies in the civil and overseas,and discusses the application of compound option in the investment decision of mining projects and using the geske model to validate it in a real example.

In the studies of compound option pricing,the defect of Geske(1979) formula is that its assumption,interest rate and volatility is constant.

Based on the point ,we build a compound options model about the valuation of eventure enterprise value.

The main purpose of this paper is to study the models of compound options with timedependent parameters.

The basic characteristics and pricing model of the real option value are studied in this paper which introduces the basic concept of the compound options and holds that Geske model is the best evaluation method for the compound options in the finance and can be applied to the investment decision-making in petroleum engineering.

This paper presents a three-dimensional(range,time,cost) risk space model,and studies the complex options method of the strategy risk control and prevention.

It also improves the price fixing mode in complex option,and establishes a technology patent price fixing mode in technical standards alliances,which will have a practical guidance in operation and performance management of technical standards alliances.