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When can the Black-Scholes Equation be used to value real options? How about the binomial method?

April 26, 2017binomial black-scholes equation method Options Used value

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When can the Black-Scholes Equation be used to value real options? How about the binomial method?

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The choice of solution method depends on the particular features of the application. Some applications can only be solved using certain solution methods. For example, the Black-Scholes formula does not work for American style options.