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Sep/Dec 2015 Furlion Co

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Sep/Dec 2015 Furlion Co

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  • December 6, 2018 at 4:56 am #487810
    jayped
    Member
    • Topics: 10
    • Replies: 8
    • ☆

    Hi Sir,

    Question 4 in the Sep/Dec 2015 sample utilises a call option for deciding whether to establish the plant. In a scenario like this one, what indicates that it is a call option we are valuing?

    Thanks.

    December 6, 2018 at 5:18 am #487813
    jayped
    Member
    • Topics: 10
    • Replies: 8
    • ☆

    March/June 2016 paper Question 4 not Sep/Dec Sorry

    December 6, 2018 at 7:21 am #487849
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54762
    • ☆☆☆☆☆

    It is an option to expand and is therefore a call option (see Chapter 14 of our free lecture notes, and the lectures that go with it).

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