Abstract: Option Pricing Theory(OPT),developed to assist corporation strategic investment decision malting, represents the recent breakthrough in the field in the West. OPT provides the decision makers with a new approach and quantitative tools to value strategic; alternatives and obtain managerial flexibility. This paper, using option approach and basic techniques is an efforts to an alyse a slightly modified actual Chinese case for its further application in real- life implementition in China.

Key words: Option Pricing Theory, strategic investment, managerial flexbiility, Chinese case study