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Option Value Calculator

Quantify the business value of AI-enabled parallel exploration.

The Idea

Traditional development forces premature commitment: pick one approach, invest heavily, discover late if it was wrong.

AI changes the economics. Now you can explore multiple approaches in parallel at minimal cost — and that optionality has measurable value.

This tool helps you:

  • Understand real options theory applied to software development
  • Calculate the option value of parallel exploration
  • Make the business case for AI-augmented development

Live Site

Coming soon.

Features

  • Theory Explained — Real options for non-finance people
  • Interactive Calculator — Input your scenario, see the value
  • Case Studies — Real examples with numbers
  • Academic Grounding — Proper citations, credible sources

Tech Stack

  • Static site (HTML/CSS/JS)
  • No backend required
  • FT-inspired design (clean, professional, lots of white space)

Development

# Just open index.html in a browser
# Or use a local server:
npx serve .

References

  • Dixit & Pindyck (1994). Investment Under Uncertainty
  • Black & Scholes (1973). "The Pricing of Options and Corporate Liabilities"
  • Myers (1977). "Determinants of Corporate Borrowing"

License

MIT


A tool by Perttu for quantifying what others only hand-wave about.

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