id	author	title	date	pages	extension	mime	words	sentence	flesch	summary	cache	txt
ap-798	Drahovzal, O.	Company Value, Real Options and Financial Leverage	2006	3	.pdf	application/pdf	1826	72	63	The value of volatility � can be determined directly from the company’s stock his- tory, or can be specified by the following formula: � � � � � �� � � � � � � � � � �( ) ( )1 2 12 2 2 0 2 0P P P PD A D D D A , (8) where �A, �0 are the standard deviations of the prices of shares and obligations, � is the correlation coefficient between them, and PD is the ratio of debt to total capital. The Black – Scholes formula for the call option is: C S N d X e N drt� � � � ��( ) ( )1 2 , (4) d S X r t t1 2 2 � � � � � � � � � � � � � � ln � � , (5) d	cache/ap-798.pdf	txt/ap-798.txt