Real Options

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Comments

  1. Avatar of tuenli tuenli says:
    May 16, 2013 at 11:32 am

    Hello,
    Thank you very much for a brilliant lecture.
    I have a question. In share option lecture you expressed that the value of the option is what we pay for the option now. Is it same for the real option? Does it mean, as in example 1, we pay now $3.90m to buy option to delay – call option?
    Can you please also clarify what is behind of the full value of project of $5.9m
    Thanks

  2. Avatar of edu1care edu1care says:
    April 21, 2013 at 3:41 am

    Sir, just some clarification please. In June 2012 exam Q1 (iii) which dealt with delaying the project I noticed they used a different method to calculate N(d1) & N(d2), does that mean I can use EITHER method in the exam? Which is the preferred option?
    Thank you -

    • Avatar of johnmoffat johnmoffat says:
      April 21, 2013 at 9:27 am

      The examiner has not used a different method. It is simply that the tables only have 2 decimal places for d and so he has made it slightly more accurate by approximating to a third decimal place.
      Although it does make it a little more accurate, you do not really need to do this in the exam – just take d to the nearest 2 decimal places.

  3. Avatar of lakeside lakeside says:
    April 17, 2013 at 9:01 pm

    It is certain that i will pass P4 now, brilliant lecture. Please can we have videos for the other options as well? and for (The valuation of acquisitions and mergers)?. This will be helpful a lot.

    Thanks

  4. Avatar of constanceqin constanceqin says:
    December 29, 2012 at 7:02 am

    Thanks alot for the great lecture! May I ask where I could find the lecture for chapter 16(The valuation of acquisitions and mergers)? Are there any vedios are for example 1 (calculate the economic value added)?

  5. Avatar of syedwaqar syedwaqar says:
    October 20, 2012 at 7:46 pm

    HELLO!

    Sir..kindly late me know, in making decision of delay or proceed..i am going to compare present npv with value of call option???? that is $2m with $3.92

    Regards

  6. Avatar of oreomolabake oreomolabake says:
    September 29, 2012 at 6:20 pm

    Thank you for the lecture.it was easy and straight forward but please could you tell me what the full value of the project will be compared to,as the video cut the decision aspect out.

  7. Avatar of achalaand achalaand says:
    June 20, 2012 at 11:08 am

    Can you please explain me that how cash flows have been arrived in the given answer of Example 02 in Chapter 16…???

  8. Avatar of y.prananv y.prananv says:
    April 17, 2012 at 7:54 am

    This lecture was awesomeeee!!!…..However, can you please upload a video on option to abandon/redeploy please?:)

  9. Avatar of nkechiokoro nkechiokoro says:
    April 13, 2012 at 3:39 pm

    thank you so much for the lecture, but i want to find out if all real options will always be a call option?

  10. Avatar of sheda100 sheda100 says:
    February 29, 2012 at 2:23 pm

    Sir, pls was the conclusion/decision to delay the project based on the fact that it has a positive value. Thnx

  11. Avatar of accaforall accaforall says:
    February 15, 2012 at 5:43 am

    thank you very much:)
    this was very helpful

  12. Avatar of yengibaryan yengibaryan says:
    December 3, 2011 at 8:13 am

    I could watch only part of the video:( There was some problem in the middle

  13. Avatar of abiose abiose says:
    November 17, 2011 at 11:03 pm

    thank you, this was brief but clear

  14. Avatar of pissukade pissukade says:
    October 5, 2011 at 9:40 pm

    N(d2) rounding off error? answers in the back of course notes has the right answer.

  15. Avatar of viviankyc82 viviankyc82 says:
    May 21, 2011 at 3:44 pm

    hi is there suppose to be a part 2 for this video? thanks

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