This textbook for MBA students, advanced undergraduates, and practicing managers uses a series of examples and case studies to demonstrate the use of option pricing in capital budgeting processes. Shockley (Indiana U.) begins with a rather lengthy review of valuation and then turns his attention to real-world applications. A state price approach is employed throughout. It is assumed that the reader is familiar with the basics of corporate capital budgeting. Annotation ©2007 Book News, Inc., Portland, OR (booknews.com)