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Compute the value of a real option using the following information: PV(project cash flows) = 51.6, NPV(project cash flows) = 1.6, Project upfront cost = 50, Risk-free rate = 4%, NPV volatility = 45.9%, Years to expiration = 1, %3D d1 = 0.0674, d2 = -0.3795, N(d1) = 0.5269, N(d2) = 0.3522, el-04°1) = 0.960789 Round your answer to two decimal places, e.g. 92.993 --> 92.99, 92.987 --> 92.99

Compute the value of a real option using the following information: PV(project cash flows) = 51.6, NPV(project cash flows) = 1.6, Project upfront cost = 50, Risk-free rate = 4%, NPV volatility = 45.9%, Years to expiration = 1, %3D d1 = 0.0674, d2 = -0.3795, N(d1) = 0.5269, N(d2) = 0.3522, el-04°1) = 0.960789 Round your answer to two decimal places, e.g. 92.993 --> 92.99, 92.987 --> 92.99

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Compute the value of a real option using the following information: PV(project cash flows) = 51.6, NPV(project cash flows) = 1.6, Project upfront cost = 50, Risk-free rate = 4%, NPV volatility = 45.9%, Years to expiration = 1, d1 = 0.0674, d2 = -0.3795, N(d1) = 0.5269, N(d2) = 0.3522, el-04"1) – 0.960789 Round your answer to two decimal places, e.g. 92.993 --> 92.99, 92.987 --> 92.99
Transcribed Image Text:Compute the value of a real option using the following information: PV(project cash flows) = 51.6, NPV(project cash flows) = 1.6, Project upfront cost = 50, Risk-free rate = 4%, NPV volatility = 45.9%, Years to expiration = 1, d1 = 0.0674, d2 = -0.3795, N(d1) = 0.5269, N(d2) = 0.3522, el-04"1) – 0.960789 Round your answer to two decimal places, e.g. 92.993 --> 92.99, 92.987 --> 92.99
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