Ernst & Young. The Case for Real Options Made Simple 39 Raul Guerrero, Asymmetric Strategy Valuing the Debt Tax Shield 50 Ian Cooper, London Business School, and Kjell G. Nyborg, Norwegian School of Economics and Business Administration Measuring Free Cash Flows for Equity Valuation: Pitfalls and Possible Solutions 60 Juliet Estridge, Morgan Stanley, and Barbara Lougee, University of San Diego Discount Rates in Emerging Markets: Four Models and an Application 72 Javier
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The Chinese University of Hong Kong CUHK Business School FINA3020 International Finance First Term 2015 – 2016 A. Staff Information Instructor: Office: Phone: Email: Office Hours: Dr. Anson C. K. AU YEUNG Room 1245, Department of Finance, CYT 3943 3780 ansonauyeung@baf.cuhk.edu.hk By Appointment TA: Office: Phone: Email: Office Hours: Miss. Karen LEE Room 1155, Department of Finance, CYT 3943 7840 karenlee@baf.cuhk.edu.hk By Appointment B. Class Schedule Session
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Southern California Jeffrey F. Jaffe, University of Pennsylvania ISBN: 0073382337 Copyright year: 2010 Table of Contents PART I: Overview 1 Introduction to Corporate Finance 1 1.1 | What Is Corporate Finance? | 1 | | The Balance Sheet Model of the Firm | 1 | | The Financial Manager | 3 | 1.2 | The Corporate Firm | 4 | | The Sole Proprietorship | 4 | | The Partnership | 4 | | The Corporation | 5 | | A Corporation by Another Name . . . | 7 | 1.3 | The Importance of Cash
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investment cost. However, if you were in a company faced with this situation, these numbers would be available. The spreadsheet for Whirlpool contains two worksheets. Worksheet 1 is a net present value analysis, and worksheet 2 applies an options pricing model to the decision. Be sure to save a copy of the spreadsheet when you download it because most of the questions refer back to the original spreadsheet, which you will often change in a preceding question. NPV Analysis (Worksheet 1) The
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put option (K). (b) two long positions in the stock, two short call options (2K), and one long position ina put (K). (c) two short positions in the stock, two long call options (2K), and one short put option(3K). (d) one long position in the stock, two short call options (2K), two short call options (3K),and one short put option (2K). For this question, take into account the net profit only for the stock. You can assume that the stock is purchased at a price of K. Binomial Model (27p)
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Avenue South, St. Petersburg, FL 33701, USA a r t i c l e i n f o a b s t r a c t This paper estimates how the shape of the implied volatility smile and the size of the variance risk premium relate to parameters of GARCH-type time-series models measuring how conditional volatility responds to return shocks. Markets in which return shocks lead to large increases in conditional volatility tend to have larger variance risk premia than markets in which the impact on conditional volatility is
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Question (1) (a)Organization is a group of people who are united to go to a certain kind of goals in a manner of planning, organizing, monitoring, controlling, cooperating and discussing with each others. Although there are many resources (land, labor, capital, entrepreneurship) that need to put into the business to achieve the organizational goals, the human resources play the most important role to reach that organizational goal since they are the one who will manufacture the products using
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Second City Options (SCO) is a small firm that specializes in option trading. Employing 35 people, SCO is located on LaSalle Street in the Chicago financial district. It is a member firm of the Chicago Board Options Exchange (CBOE), where it trades options on stocks and stock indices. It is also a member firm of the Chicago Mercantile Exchange Group (CME Group), where it trades options on futures and the underlying futures contracts. SCO trades for itself and a number of corporate and individual
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governments of Abu Dhabi, Singapore, South Korea and China, among others. By the end of January 2008, $75 billion of new capital had been injected into the banks, but it was not enough. In the uk the sharply rising cost of liquidity destroyed the business model of a large mortgage house, leading to the first bank run in the uk for 150 years and obliging the British Chancellor first to extend nearly £60 billion in loans and guarantees to its depositors and then to take the concern, Northern Rock, into public
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denominated in currency (usually of the issuing country) different than that of market. Inflation protected securities: face values change with changes in price level. There is a fixed coupon rate, the amount changes with principle. 10.2 Bond pricing: Bond value = PV of coupons + PV of par Bond price = Bonds can be priced at a premium, discount, or at par. If the bond's price is higher than its par value, it will sell at a premium because its interest rate is higher than current prevailing
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