Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Assumptions
1. All the assumptions underlying the Black-Scholes model apply
2. The current value of the project and the variance in this value are known.
Enter the life of the product patent / project rights = 10 (in years)
As a default, we will assume that you if you do not invest in the project once it becomes viable, you will lose one year of protection and that
your cash flows will decline proportionately (1/remaining life of the patent)
Do you want to change this default? No
If so, enter the expected annual cost of delaying investment (as % of value)
General Inputs
Enter the riskless rate that corresponds to the option lifetime = 8.00%
OPTION WORKSHEET:PATENT AS OPTION
d1 = 0.03
N(d1) = 0.51
d2 = -0.92
N(d2) = 0.18