Blackscores pricing model

This topic has 1 reply, 2 voices, and was last updated 10 years ago by John Moffat.

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April 18, 2016 at 7:15 am #310910
mtikama
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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.
April 18, 2016 at 8:32 am #310988
John Moffat
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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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