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Real Options

This topic has 1 reply, 2 voices, and was last updated 7 years ago by John Moffat.

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November 9, 2017 at 3:36 am #414926
nur
Member
- Topics: 2
- Replies: 0
Hi,
I am made to understand that the option value calculated = NPV + option price.
Is this applicable to all four situations; delay, expand, abandon and redeploy?
November 9, 2017 at 9:11 am #414960
John Moffat
Keymaster
- Topics: 57
- Replies: 54733
No – the value of the option itself is the figure arrived at from the Back Scholes formula.
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