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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Black and Scholes pricing model
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
The value from the formula gives the NPV on the basis that the option is available.
