A Fuzzy Pay-Off Method for Real Option Valuation

This paper presents a new method (fuzzy pay-off method) for real option valuation using fuzzy numbers that is based on findings from earlier real option valuation methods and from fuzzy real option valuation. The method is intuitive to understand and far less complicated than any previous real option valuation model to date. The paper also presents the use of triangular and trapezoidal fuzzy numbers with the method.