This is a numerical sum in latest Kaplan Study Text (page no.282)-Spark Company.
Using Black Scholes option pricing model,derive a value for the total equity of EBMS.
Why is that when the question says it is redeemable in 3 years time,the solution shows calculation of fair value for 4 years???
I can’t understand this.Please explain.
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Numerical example of BSOP and equity valuation
5y ago#1I am sorry but I do not have the Kaplan Study Text and so I cannot help you.
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