Valuing equity using BSOPForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Valuing equity using BSOPThis topic has 1 reply, 2 voices, and was last updated 8 years ago by John Moffat.Viewing 2 posts - 1 through 2 (of 2 total)AuthorPosts May 29, 2017 at 1:21 pm #388772 mansoorParticipantTopics: 424Replies: 542☆☆☆☆Good evening sirwhen we talk about valuing equity using bsop….its saying that in effect, value of shares can be seen as a call option.my question: is he talking about shareholders owning call options? call option is the right to buy …. but they ALREADY own the shares….can u pls explaini dont quite get the understanding..even tho the math is ok. May 29, 2017 at 5:55 pm #388817 John MoffatKeymasterTopics: 57Replies: 54701☆☆☆☆☆Yes, but the market value of the shares is what other people are prepared to pay for them. Buying them is like a call option because you get the benefit of the company doing well, but there is a limit on what you stand to lose if the company fails.AuthorPostsViewing 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