• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

June 2025 ACCA Exam Results

Comments & Instant poll >>

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for June 2025 exams.
Get your discount code >>

Real Options Pa and Pe values

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Real Options Pa and Pe values

  • This 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)
  • Author
    Posts
  • May 16, 2016 at 9:21 am #315294
    hisham503
    Participant
    • Topics: 35
    • Replies: 55
    • ☆☆

    Please tell me whether my understanding is correct regarding Pa and Pe

    1-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 Moffat
    Keymaster
    • Topics: 57
    • Replies: 54711
    • ☆☆☆☆☆

    1 and 2 are correct.

    For 3 , Pa is the PV of the additional flows due to the expansion

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • John Moffat on FA Chapter 6 Questions Depreciation
  • Masterodad on FA Chapter 6 Questions Depreciation
  • natashad25 on MA Chapter 3 Questions Presenting Information
  • Rachaelosa on PPE – Financial Statements and PPE – ACCA Financial Reporting (FR)
  • Sarah461422 on Audit Evidence – ACCA Audit and Assurance (AA)

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in