Option to Delay: an American Call on the Project
This lesson is part of the course
In this lesson
You value Tarrow's right to wait up to four years before building the mine by rolling an option tree back from year 4 to today.
Buy the course once for $9.99 to unlock every lesson and lab, the final exam and the certificate – lifetime access, no subscription.
Lessons in this course
- Static NPV vs Flexibility: Why NPV Undervalues Projects Locked
- Binomial Tree Parameters: u, d and the Risk-Neutral p Locked
- Building the Underlying Value Tree Locked
- Option to Delay: an American Call on the Project Locked
- Option to Expand: Paying to Scale Up Locked
- Option to Abandon: a Put with a Salvage Value Locked
- Staged Investment: a Compound Option in Two Phases Locked
- Sensitivity to Volatility & a Summary Chart Locked