What is the abandonment option value if Varroc Lighting Systems uses Black-Scholes formula? In order to be able to calculate the abandonment option for the project, Fuse Lighting has calculated the following values needed: The current project value is $536.02 million. The project volatility is 39.60%. The maturity of this abandonment option is 1 year. The risk-free rate is 5%. (Note: The exercise price is the price that the company can get for selling the plant when it decides to abandon the project.)

What is the abandonment option value if Varroc Lighting Systems uses Black-Scholes formula? In order to be able to calculate the abandonment option for the project, Fuse Lighting has calculated the following values needed: - The current project value is $536.02 million. - The project volatility is 39.60%. - The maturity of this abandonment option is 1 year. - The risk-free rate is 5%. (Note: The exercise price is the price that the company can get for selling the plant when it decides to abandon the project.)