Real Options Pa and Pe valuesForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Real Options Pa and Pe valuesThis topic has 1 reply, 2 voices, and was last updated 9 years ago by John Moffat.Viewing 2 posts - 1 through 2 (of 2 total)AuthorPosts May 16, 2016 at 9:21 am #315294 hisham503ParticipantTopics: 35Replies: 55☆☆Please tell me whether my understanding is correct regarding Pa and Pe1-Abandon(Put option) option Pa is the value which will be lost by selling the project earlier and Pe is the value we received by selling.2-Delay option(Call option) Pa is the p.v of the project Pe is the capital expenditure that can delayed.3-Expansion option. Pe is the amount of cost needed for expansion. It but what is the Pa in expansion? and expansion is like call option?Please mention any error i made in 1 and 2 and explain 3. May 16, 2016 at 9:37 pm #315361 John MoffatKeymasterTopics: 57Replies: 54695☆☆☆☆☆1 and 2 are correct.For 3 , Pa is the PV of the additional flows due to the expansionAuthorPostsViewing 2 posts - 1 through 2 (of 2 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In