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Hi John
I am struggling to understand one thing about this question.
When calculating value using BSOP model, why are we not calculating the value of put option but instead using call option value to estimate the gain to Nente co share.
Thank you.
I do not have the Kaplan Kit, but I do have the original exam question (and I assume that Kaplan has not amended the part about the option).
If is an option to delay, and options to delay are call options because there is the right to invest on a future date (similar to the idea with share options that a call option is the right to invest (i.e. buy a share) at a fixed price on a future date.
Have you watched my free lectures on both share options and on real options?
Hi John
Thank you for the explanation.
Yes, I have watched all of your lectures and they did help me to understand quite a lot of things which I was initially struggling with.
For me personally, there is a lot to take in and I think I am beginning to lose track..
Thank you again for your help.
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