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▲ sklargh 4 hours ago

I’d think that orders for long lead time rivalrous slots of a very finite resource are basically OOTM call options for future demand. It says something that firms think demand is plausible but not a whole lot about how probable it really is. You can always idle these things, you can’t conjure one immediately.

▲c-fe 4 hours ago | parent [-]

Welcome to the field of real options! https://en.wikipedia.org/wiki/Real_options_valuation

▲sklargh 2 hours ago | parent [-]

This was a fun morning read thank you.