6. Real options and putcall parity (S23.2) Redo the example in Figure 23.2, assuming that the real...

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6. Real options and put–call parity (S23.2) Redo the example in Figure 23.2, assuming that the real option is a put option allowing the company to abandon the R&D program if commercial prospects are sufficiently poor at year 2. Use put–call parity. The NPV of the drug at date 0 should again be +$7.7 million.

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Principles Of Corporate Finance

ISBN: 9781264080946

14th Edition

Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans

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