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Black and Scholes pricing model

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Black and Scholes pricing model

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • March 18, 2018 at 8:42 pm #442974
    Saimon
    Participant
    • Topics: 123
    • Replies: 55
    • ☆☆

    Sir,

    what does the value of call option or put option indicate in situation like “delay/defer, expanding or abandoning project ”

    actually i m confused whether value of call option or put option calculated using Black and scholes pricing model indicated NPV after delaying or expanding the project

    March 19, 2018 at 7:03 am #442997
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54719
    • ☆☆☆☆☆

    The value from the formula gives the NPV on the basis that the option is available.

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Viewing 2 posts - 1 through 2 (of 2 total)
  • The topic ‘Black and Scholes pricing model’ is closed to new replies.

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