In which of the following corporate applications would the Black-Scholes formula not be of much use?

Question

Quizplus · Accepted Answer

The Black-Scholes formula is primarily used to value financial options, such as stock options, and may not be as applicable to valuing real options, which are non-financial options related to strategic decision-making in business. The Black-Scholes formula is primarily used for valuing options related to financial securities, such as stocks and bonds. While it can be applied to valuing real options (i.e. non-financial investments), there may be other models or approaches that are better suited for these types of investments.

In Which of the Following Corporate Applications Would the Black-Scholes