Option Analysis: Making better decisions faster

Option Analysis is a compact Decision Analysis method, that has proven itself in the field. This paper describes the essential steps of the technique, highlighting its heavy use of graphical representations. Easy modeling using preprogrammed functions in a popular spreadsheet enhances its value as a practitioner’s approach. A real life application of a Financial Holding Decision Problem is used throughout, to illustrate the Option Analysis approach. Finally, some remarks on its potential, as well as future developments are given.