Numerical example of BSOP and equity valuation

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January 15, 2020 at 4:45 pm #558784
gail98
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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.
February 21, 2021 at 8:48 am #611164
John Moffat
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I am sorry but I do not have the Kaplan Study Text and so I cannot help you.
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