Title :
Estimating software cost contingency using options theory
Author :
Boukendour, Said
Author_Institution :
Univ. du Quebec en Outaouais, Que, Canada
Abstract :
This paper aims to estimate the project cost contingency regardless the individual utility function and risk aversion. Considering a project alike a short selling, the option pricing theory is used to value the contingency as a risk premium that would be required by the market if the project was a traded security.
Keywords :
pricing; project management; risk analysis; software cost estimation; option pricing theory; risk aversion; software project cost contingency estimation; utility function; Computer industry; Cost function; Distributed computing; Position measurement; Pricing; Protection; Security; Supply and demand; Uncertainty;
Conference_Titel :
Information Technology: Coding and Computing, 2005. ITCC 2005. International Conference on
Print_ISBN :
0-7695-2315-3
DOI :
10.1109/ITCC.2005.147
