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Black Scholes_theory

AACCA_procrastinator10y ago
Hello sir! Could the value of call/put options in Black Scholes model be negative? For example,if the NPV of the project is slightly positive but delaying the project will make it worse, i.e. negative. Thank you in advance!
John MoffatJohn MoffatTutor10y ago#1
No. The worst that can happen is that the value of the options is zero. It cannot be negative. Usually it will be positive and will therefore make the project better :-)
AACCA_procrastinator10y ago#2
Thank you, sir!
John MoffatJohn MoffatTutor10y ago#3
You are welcome :-)
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