menu icon Clever Thinking
Tel +44 (0) 1482 626400

Real Options SLS

It is standalone software with Excel add-in for analyzing and valuing real options, financial options, exotic options and employee stock options. With Real Options SLS, all inputs could be incorporated into custom spreadsheet models, allowing creating your own “à la carte” fully customized models, where all the mathematical equations and functions are visible. Consequently, option valuations and results are easier to understand and explain, especially, allowing users valuing to financial and real assets, quantifying flexibility, and mitigating uncertainty.

Real Options SLS - Software

Move beyond the academic papers and theoretical realm, and start applying real options with this new software. Real Options SLS is a standalone software and spreadsheet accessible add-in for analyzing and valuing real options, financial options, exotic options and employee stock options and incorporating them into custom spreadsheet models. The newly designed customized option modules allow you to create your own à la carte fully customized models, where all the mathematical equations and functions are visible, thus demystifying the approach and results, making them easier to understand and explain.

Solves Real Options such as sequential compound options, phased stage-gate options, and multiple asset options, with the combinations of options to abandon, barrier, choose, contract, expand, switch, wait and defer, and any user-specific customizable real options, with the ability to mix and match options (mutually exclusive and nested options)

Solves Financial Options including mixed multiple assets, benchmark options, warrants, convertibles, structured financial vehicles, combined with American, European, Bermudan and Asian options, and any make-your-own options

Solves Employee Stock Options with vesting, forfeitures, suboptimal exercise multiples, performance-based shares (external market or internal corporate), and make-your-own custom options

This is the same software used by the U.S. Financial Accounting Standards Board when creating their FAS 123R in 2004

You can create your own option models using predefined equations or your own equations, where a 1000-step binomial lattice can be computed in a few seconds (something that if done manually will take hundreds of years on a computer), and also has closed-form model benchmark models from Black-Scholes-Merton to other advanced closed-form American models

Available in English, Spanish, Japanese, Chinese (S), Chinese (T), Portuguese, Italian, French, German, Korean, Russian and has multiple language detailed User Manuals with sample case studies and step-by-step modeling techniques and solutions as well as 80 detailed example models

Runs Binomial, Trinomial (mean-reverting options), Quadranomial (jump-diffusion options), Pentanomial (rainbow compound options) models as well as over 300+ closed-form advanced options models (state-pricing models, analytical methods, volatility computations, variance reduction, American approximation models, options valuation via simulation techniques, all types of bond-options and convertible warrants, changing volatility options, other options-related models and much more!)

ROV Strategy Trees: ROV Strategy Tree is an easy-to-use module for creating visually appealing representations of strategic real options. This module is used to simplify the drawing and creation of strategy trees but is not used for the actual real options valuation modeling (use the Real Options SLS software modules for actual modeling purposes).

SLS is fully functional in Excel, where you can run Monte Carlo risk simulation on your option models, link to and from other existing Excel models, and apply other advanced analytics like Risk Simulator's Monte Carlo simulation, optimization, stochastic forecasting and VBA macros

The generated lattices’ equations and functions in Excel are fully visible with a live model with links and equations...

It is a powerful options modeling learning tool

SLS is a fully customizable modeling tool, with the ability to enter in your own options equations

Leverage existing static NPV analysis to add financial sophistication including dynamic simulation, real options analysis, and optimization and you can use a framework for identifying, valuing, selecting, and prioritizing the right projects to gain additional insights into strategic value and management flexibility in decision making

You can correctly evaluate a project’s strategic intrinsic value and eliminate the possibility of undervaluing the strategic value of certain projects, identify, frame, and value future strategic opportunities, and incorporate new decisions over time, as opposed to NPV’s requirement that all decisions be defined at the outset by analyzing multiple strategic decision pathways, as opposed to NPV’s single decision pathway

The SLS software is a reliable, repeatable, and consistent process for decision making within a user-friendly software with powerful analysis tools to solve problems that cannot be otherwise solved

8 books on risk analysis, real options, and options valuation written by the software’s creator, a set of Training DVD on real options and risk analysis (simulation, forecasting, optimization, real options, and applied statistics)

Real Options SLS software can be downloaded immediately from our website with a default 10 day trial license. Our philosophy is you get to try before you buy. Once you use it, we are convinced you will fall in love with the simplicity and the power of the tool, and it will become an indispensible part of your modeling toolbox. We also have academic licenses for full-time professors teaching risk analysis (and their students) or other associated courses using Real Options SLS or our company’s other software products. Contact for details.

Advanced analytical tools such as the Risk Simulator software are built to be easy to use but may get the analyst in trouble if used inappropriately. Sufficient theoretical understanding coupled with pragmatic application experience is vital; therefore, training is critical.

Our Risk Analysis course is a two-day seminar focused on hands-on computer-based software training, with topics covering the basics of risk and uncertainty, using Monte Carlo simulation (pitfalls and due diligence), and all of the detailed methods in forecasting and optimization.

We also have a Real Options for Analysts course for the analysts who want to immediately begin applying strategic real options in their work, but lack the hands-on experience with real options analytics and modeling. This two-day course covers how to set up real options models, apply real options, and solve real options problems using simulation, closed-form mathematics, binomial and multinomial lattices using the Real Options SLS software.

The Certified in Risk Management (CRM) seminar is a four-day hands-on class that covers the materials on our Risk Analysis and Real Options for Analysts courses and geared towards the CRM certification provided by the International Institute of Professional Education and Research (AACSB member and eligible for 30 PDU credits with the PMI).

Our Risk Analysis for Senior Managers is a one day course specially designed for senior executives, where we will review case studies in risk management from 3M, Airbus, Boeing, GE, and many others. It provides an executive overview of risk analysis, strategic real options, portfolio optimization, forecasting and risk concepts without the technical details.

Also available are other customized decision, valuation and risk analysis courses with an emphasis on on-site trainings customized to your firm’s exact needs based on your business cases and models). Consulting services are available, including the framing of risk analysis problems, simulation, forecasting, real options, risk analytics, model building, decision analysis, integrated OEM and software customization.

How do I install the software?

Make sure that you have administrative rights to install the software, and that your system requirements match or exceed those required in Item 1 above. In addition, make sure you have .NET Framework 2.0, 3.0, 3.5 or later already installed on your computer. Then, simply download the trial or full version of the software, double click on the exe file, and follow the instructions. Make sure to first uninstall any older versions of Risk Simulator before attempting to install a new version.

Resolution Issues

In WIN7 and Vista, users have the option to change the screen resolutions by “zooming in/out” and not just using a regular resolution change. When changing resolutions the regular approach (e.g., changing from 1280 x 800 to 1080 x 680) will not affect ROV software look and feel. However, using the zoom function does mess up some visuals (this is true of all software out there, and Windows actually even provides a warning message explaining this). The first two figures illustrate some effects of this zoom view.
Solution: Click on Start > Control Panel > Appearance and Personalization > Display and you see the user interface (see the third figure below). Change the view back to “Smaller 100% (Default)” then log-off and log-on to take effect and the RS/SLS software will display normally and correctly.

What are the system requirements for installing Real Options SLS?

The system requirements are:

  • Windows XP, Vista (32 and 64 bit), or Windows 7 (32 and 64 bit)
  • Microsoft Excel XP, 2003, 2007, or 2010 (32 bit and 64 bit)
  • 1GB RAM Minimum (2 GB minimum recommended)
  • 100 MB Hard Drive
  • Administrative Rights to install software
  • Microsoft .NET Framework 2.0, 3.0, 3.5 or later
  • MAC OS users will require either Virtual Machine or Parallels running Microsoft Exce
Why did I get a System Clock Back Error?

Shame on you! You are getting this error because you have finished your 30-day trial period and attempted to change the system clock back in order to keep using the software for free! The software has caught you playing with the system clock. To continue, you will need to purchase a permanent license from us, and at that time, we will provide you a Fix-Clock license key to take care of the problem plus unlock the software permanently.

Will Real Options SLS work on international computers?

Yes it will, on one condition, that you set the regional settings to English (USA). To do this, first exit Excel and go to START, CONTROL PANEL, REGIONAL AND LANGUAGE OPTIONS, and select ENGLISH (UNITED STATES) and restart Real Options SLS. The results will now be valid and accurate.


Real Options Valuations and his CEO/Chairman Dr. Johnathan Mun are the software’s creator. These products including consulting and training activities have delivered and implemented in many Fortune 500 firms (from 3M, Airbus, and Boeing to GE and Motorola) and the government (Department of Defense, State and Federal Agencies, Central Banks, Regulators) on risk analysis, valuation, and real options. Dr. Johnathan Mun and his worldwide collaborators (risk managers, specialists and researchers) have written many books and peer-reviewed papers on the risk management and decision making, including Real Options Analysis: Tools and Techniques, 1st and 2nd Edition (Wiley Finance, 2002, 2005); Real Options Analysis Course: Business Cases (Wiley Finance, 2003); Applied Risk Analysis: Moving Beyond Uncertainty in Business (Wiley, 2003); Valuing Employee Stock Options Under 2004 FAS 123 (Wiley Finance, 2004); Modeling Risk: Applying Monte Carlo Simulation, Real Options Analysis, Forecasting and Optimization (Wiley, 2006); Advanced Analytical Models: 800 Functions and 300 Models from Basel II to Wall Street and Beyond (Wiley 2008); The Banker’s Handbook on Credit Risk: Implementing Basel II (Elsevier Academic Press 2008); and others. Real Options Valuation, Inc. develops advanced analytical software products and IT solutions, consulting, and training services in a joint venture with OSL Risk Management, Ltd.