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Unformatted text preview: 10 (in years) Enter the cost associated with waiting an extra year to expand = 0.00% General Inputs Enter the riskless rate that corresponds to the option lifetime = 6.50% (in %) VALUING A LONG TERM OPTION/WARRANT Stock Price= $100.00 T.Bond rate= 6.50% Strike Price= $150.00 Variance= 0.10 Expiration (in years) = 10 Cost of delay = 0.00% d1 = 0.7445348919 N(d1) = 0.7717235298 d2 =-0.2554651081 N(d2) = 0.3991819447 Value of Option to Expand = $45.91...
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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.
- Fall '11