ACCA I Advanced Financial Management (AFM) I Real Options - AFM Lecture 2

[@Champingcom]

Thanks for the detailed explanation. It was very helpful. One thing to note here for all is that we no longer will be required to calculate black scholes like D1,etc....we will be given BSOP calculator.

[@siyafsalim5127]

do we have to further explain it or will that be enough??

[@isuruthilanka3834]

Thank you for this lecture. You have taken a lot of time to explain all the things in a detailed manner which makes it easier to follow.

[@blackm9063]

Thank you so much... The best teaching AFM ive seen .. God bless u

[@shauki123]

Great lecture, but there seems to be a little confusion @ 1:19:30 onwards, as per my understanding there is only one party involved, the investor who sells the call options so he is called option writer, he either sells the call options or buys the shares. you are assuming that there is someone who is called option writer whom we are selling the calls. Please double check your concept. Thanks.

[@ngomusacherncy8432]

Hhayi girl u are brilliant shem sorry💚👏🏽🙌🏽

[@shauki123]

@1:27:40 the switch option is not the example of put option, the only put option out of the given 4 types is the option to abandon.

[@SabiAkther]

Switch option is a put option. Get your facts right. You can refer the textbook

[@shauki123]

@@SabiAkther First I thought switch option could be both the call option as well as put option depending on if you're making additions in the asset or selling a part of it after switching. But as I referred to the text book it says Switch option is the CALL option. I'll try to email you the image from text book.

[@jaabirjeeawody2230]

​@@shauki123Did you email her?

[@sk5458]

Why was Put call option not solved with the formula? It wasn't done anywhere in the lecture.

[@fastsparkel2548]

at 12:59 can we say that when " in the money" we will buy options because price is less and value is more?

[@cmamohsinali]

Thanks for sharing, your teaching technique is really easy to understand.

[@bunmiobidigbo5034]

Amazing!!! In 21:12 Increase in interest rate decreases put value In 2:02:41 it says the opposite ….

[@suhadaijaz]

Thank you for the detailed explanation. Ma'am, I have a doubt in illustration 6 shouldn't we convert years in decimals? because you said everything need to be converted into decimals and in previous problem we converted months into decimal so why not in this? kindly explain

[@girishpai4538]

Maam i have doubt in 1:53:49 Phase 2) what is the investment amount and the cash flows i did 3x i got wrong NPV. in phase 2

[@nandinir847]

Thankyou for all the efforts that you take🤝☺️

[@caasifsafder3403]

👍👍👍👍👍👍👍👍 Great work thanks.

[@ramanacreations939]

Real option 1:23:20

[@cmacsmdmerazquadiri]

nicely explained- Thank you very much

[@fionazhou1178]

Hi Sabi, thanks for your lecture, it is very detailed and helpful for my exam prep . Could you show the calculation of Pa (PV of net cash inflows from phase two) of 144m at 1:57 please? Thank you! 😊

[@adityachaudhry7566]

For those reading the comments section looking for this: Pa is the PV of future cashflows. Cashflows from Phase 2 are $40M per year from t3-t8 (6 years). Discount the Annuity, using 10% interest rate for 6 years, as at T3 the value is around $174M. Then discount this value to year 0 (2 year period) , which would give you approx $144M .

[@prakharagarwal8064]

Amazing...thank you

[@khandaker27]

Very effective..Thanks

[@bunmiobidigbo5034]

Pa of 144m should be 40m * Annuity of 6 yrs * Discount factor for yr2

[@anishkabra4309]

Thank You

[@souravshrimal1583]

Can you please share the notes of the lecture?

[@Champingcom]

Thanks very much

[@abiolaabioye1604]

Thank you very much for the lecture. it is very detailed

[@mhprotic]

Hi thanks for sharing Do you check emails?

[@SabiAkther]

Yes I do!

[@mhprotic]

but I did i think no reply

[@SabiAkther]

@@mhprotic what's your email ID?