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TECHNOLOGY VALUATION AND NEGOTIATION

STUDENT NAME: JOHAN ROBERT


GALVAN VILLA
GROUP: 212032_61
DATE: APRIL 03
APRIL 03/04/2021
SELECTED TOPIC:
REAL OPTIONS METHOD CALCULATED WITH BLACK-SHOLES MODEL

Definition of selected topic Processes related to calculating


the value of technology using
the selected method
Black and Scholes Option Pricing
Model The Black-Scholes model is a formula used
to value the price of a financial option.
The Black-Scholes model is a
This formula is based on the theory of
formula used to value the price
stochastics.
of a financial option. This formula
The Black-Scholes model owes its name to
is based on the theory of the two mathematicians who developed it,
stochastic processes. The Black- Fisher Black and Myron Scholes. Black-
Scholes model owes its name to Scholes was originally used to value non-
the two mathematicians who dividend options. Or what is the same, to
developed it, Fisher Black and try to calculate what should be the "fair"
Myron Scholes. price of a financial option. Later, the
calculation was extended for all kinds of
options.

Black scholes model

Answer the question: How can companies create value from their
innovation, applying the method according to the selected method
previously?

The Black Scholes Formula was an innovation since in a way empirically the value of the
company is seen as a purchase option on the assets Of the same; in such a way that if on the
due date of the debt the value of the company assets is greater than debt, shareholders
exercise their option; for him On the contrary, if at the maturity of the debt the value of the
assets of the company is less than the debt, the shareholders do not exercise their purchase
option and thus allow that the creditors stay with the company. For many the development of
Black and Scholes is one of the most important reasons for the growth of finance in the
last years; This analysis is fundamentally mathematical, but framed in the financial profit
through options and business valuation concepts.

José Francisco López(09 de diciembre, 2017).Modelo Black-Scholes. Economipedia.com

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