OPTION WORKSHEET: LONG TERM OPTIONS

VALUINGANEXPANSIONOPTION
Thisprogramcalculatesthevalueofanexpansionoption
inaninvestmentanalysis.
Inputsrelatingtheunderlyingasset
Enterthepresentvalueofexpansionpotential(asassessedtoday)=

$100.00

(incurrency)

Entettheannualizedstandarddeviationinln(presentvalueofCF)

31.62%

(in%)

Entertheinitialinvestmentneededforexpansionoption(inPV$)=

$150.00

(incurrency)

10

(inyears)

Enterthenumberofyearsyouhaverightstoproject
Enterthecostassociatedwithwaitinganextrayeartoexpand=

0.00%

GeneralInputs
Entertherisklessratethatcorrespondstotheoptionlifetime=

6.50%

(in%)

VALUINGALONGTERMOPTION/WARRANT
StockPrice=

$100.00

T.Bondrate=

StrikePrice=

$150.00

Variance=

Expiration(inyears)=

10

Costofdelay=

6.50%
0.10
0.00%

OPTION WORKSHEET: LONG TERM OPTIONS

d1=

0.7445348919

N(d1)=

0.7717235298

d2=

0.2554651081

N(d2)=

0.3991819447

ValueofOptiontoExpand=

$45.91