Hi everybody! This is my first time posting a message for this forum!!! I'm working on the articole of Eduard Schwartz "Patents and R&D as Real Options" where a variation of the LSM algorithm is used to value an R&D project. I found in this forum a vba code that develops the LSM algorithm method for the valuation of an American Put Option but I cannot understand how to modify that vba code for the project valuation. I mean I don't understand how to do the regression and the controlled diffusion process who describes the dynamics of the expected cost to completion. Could someone give me some help. Thank you very much in advance!!!!!

Please, let me know if there is some problem with my english or maybe I made a wrong question??? Thank you very much in advance!!!!

Richard Razgaitis @ InteCap has addressed various issues involving intellectural capital and real options.