Guys, who tried Wit & Pratney in BPP revision kit. Is it correct that Pe (3140) which will happen at the end of Y3 is not discounted (at the cost ofcapital). I think there is a mistake. Does anybody try this question?
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AFMROPT Q Wit & Pratney in BPP
Could anybody help me to clarify... There are several types of real options: To delay, to redeploy, to abandon... In example with Wit & Pratney they developed a new engine.
This means a call options. What are examples when we ll have to calculate the price of put? Its still not clear to me re ROPT. But there is a big chance the subject will appear this time.
This means a call options. What are examples when we ll have to calculate the price of put? Its still not clear to me re ROPT. But there is a big chance the subject will appear this time.
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