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Using the WACC to Value Real Options

✍ Scribed by Tom Arnold and Timothy Falcon Crack

Book ID
124188086
Publisher
CFA Institute
Year
2004
Tongue
English
Weight
838 KB
Volume
60
Category
Article
ISSN
0015-198X

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πŸ“œ SIMILAR VOLUMES

Valuing real options using implied binom
Valuing real options using implied binomial trees and commodity futures options
✍ Tom Arnold; Timothy Falcon Crack; Adam Schwartz πŸ“‚ Article πŸ“… 2007 πŸ› John Wiley and Sons 🌐 English βš– 324 KB

## Abstract A real option on a commodity is valued using an implied binomial tree (IBT) calibrated using commodity futures options prices. Estimating an IBT in the absence of spot options (the norm for commodities) allows real option models to be calibrated for the first time to market‐implied prob