How does real option value compare with Faustmann value when log prices follow fractional Brownian motion?

The difference in the NPV calculated using FBM compared to the NPV of classic Faustmann or GBM depends on the fractional difference, log price and volatility. Analysis of the extended A grade price series indicates an H value of about 0.3. At this level the differences at stand age 0, from both Faustmann and GBM, are modest in terms of NPV. However the differences are marked in terms of reserve log price strategy, probability of harvest and rotation age. Differences in NPV between FBM and Faustmann increase and become material as volatility increases.