delay - Enter the number of years you have rights to...

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OPTION WORKSHEET: LONG TERM OPTIONS VALUING AN OPTION TO DELAY A PROJECT This program calculates the value of the option to delay making an investment. Inputs relating the underlying asset Enter the present value of cash flows from investing in pro $350.00 (in currency) Entet the annualized standard deviation in ln(present value 22.36% (in %) Enter the initial investment needed to take project (in PV $ $500.00 (in currency)
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Unformatted text preview: Enter the number of years you have rights to project 20 (in years) General Inputs Enter the riskless rate that corresponds to the option lifetim 7.00% (in %) Output Stock Price= $350.00 T.Bond rate= 7.00% Strike Price= $500.00 Variance= 0.05 Expiration (in years 20 Annualized dividend yield= 5.00% d1 = 0.543325056 N(d1) = 0.706546992 d2 =-0.456674944 N(d2) = 0.323952351 Value of Option to Delay = $51.03...
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This note was uploaded on 01/29/2012 for the course FIN 6000 taught by Professor Banko during the Fall '11 term at University of Florida.

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