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Blackscores pricing model

Mmtikama10y ago
Hi John, I did not indicate the topic. However the question remains the same. If given a NPV of -2,000,000 and an investment outlay of $20,000,000 what would be Pa and Pe when all variables are given.
John MoffatJohn MoffatTutor10y ago#1
I assume you mean Black Scholes pricing :-) Pe = 20M and Pa = 18M (if the NPV is - 2M then the PV of the returns must be 18M)
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