Sensitivity to Volatility & a Summary Chart
This lesson is part of the course
In this lesson
You value the delay option for six volatilities in one row-by-row formula, chart how the option value rises with σ, and summarise all four real options.
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