Typhoon Hato brought unprecedented destruction to Macau in 2017. Notably, the burgeoning casino gambling industry in Macau was severely affected overnight. Sociedade de Turismo e Diversões de Macau (STDM) owns the Grand Lisboa, which is one of the most prestigious in Macau and it was damaged but not destroyed due to the storm. The reason is that it was not directly in the path of the typhoon. However, since the competitor casinos were completely destroyed and will have to rebuild from scratch, STDM believes it is likely to have a number of good opportunities. You have been hired to provide STDM with strategic advice. What have you learned about real options that will help you develop a strategy for STDM?