Real Options have emerged as a way to capture the§value of managerial flexibility embedded in§investments allowing managers to generate new§opportunities. This methodology is applied to a real§estate project where the optimal strategy§(simultaneous vs. sequential), construction time, and§exclusive rights to the land are determined. §Real Options are also applied to credit risk, where§default occurs the first time the exchange rate§crosses the default barrier. A two-phase calibrated§structural model is proposed for the estimation of§the sovereign spreads and default probabilities...