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Black Scholes Option Pricing Model Question

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Black Scholes Option Pricing Model Question

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • January 26, 2021 at 11:02 am #608080
    jareerabedin
    Member
    • Topics: 91
    • Replies: 72
    • ☆☆

    Dear Sir,
    in BSOP, I am having difficulties in identifying the Pa Value.

    Is this correct?:
    If we are going to calculate the price of an option, in an npv question, and lets say the option exercise date is after 3 years, then the pa will be all the cash inflow’s present value from year 4 onwards.

    is this correct?

    thank you

    January 26, 2021 at 1:49 pm #608103
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54696
    • ☆☆☆☆☆

    Yes, that is correct 🙂

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • The topic ‘Black Scholes Option Pricing Model Question’ is closed to new replies.

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