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Class Example 1 A firm has a three-year real option to invest in a projedt that has a present value of $500 million with an
Class Example 1 A firm has a three-year real option to invest in a projedt that has a present value of $500 million with an exercise price (in year 3) of $800 million Calculate the value of the option given that N(d1) 0.3 and N(d2) 0.15. Assume that the risk-free interest rate is 6 percent per year
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