It is sometimes said that equity itself is like a call option on the firm. In what

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It is sometimes said that equity itself is like a call option on the firm. In what sense is this true? Can real investment opportunities be valued as options?

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Microeconomics An Intuitive Approach with Calculus

ISBN: 978-0538453257

1st edition

Authors: Thomas Nechyba

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Posted Date: May 13, 2024 09:14 AM

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It is sometimes said that equity itself is like a call option on the firm. In what

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The statement that equity is like a call option on the firm means that similar to how a call option ... View the full answer

Microeconomics An Intuitive Approach with Calculus

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