You must enter current price you want to sell now.You must enter the selling price of the property at the end of the option peirod.standard deviation or volatility of property prices per annum.You must enter the risk free rate, usually government bonds rate.You must enter the time period for the option in months.

Fair Value Land option Calculation. CopyRight.

Use this to calcuate the option price you want to receive from a potential buyer

Current Price you want to sell now (say 250000)
Price you want to sell on exercising the option (Usually same as the current price above)
Changes in land prices (Volatility per annum) in % ie 10 % is 0.1
Risk Free Rate in % ie 5 % is 0.05
How long is the option	1 month 2 months 3 months 4 months 5 months 6 months 7 months 8 months 9 months 10 months 11 months 12 months 18 months

You need to input some values