BANC ONE CORPORATION An Analysis of their Hedging Strategy By Mark Glitto‚ Gajendra Tulsian‚ Robert Young University of Florida Summer 1997 INTRODUCTION In 1993 the stock price of Banc One Corporation had dropped from about $45 at the beginning of the year to approximately $35 at the end of the year: roughly a 20% fall. This sharp decline in stock price greatly bothered John B. McCoy‚ chairman and CEO of Banc One Corporation. A high stock price was essential for Bank One’s strategic goal
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3. Differences between APV and option valuation Valuing MW Acquisition by using APV method assumes in practice that exploiting of all MW’s reserves is certain and happens right after the acquisition. In other words‚ the APV method excludes the flexibility in future decision making. In this case‚ Apache has both an option to defer the exploiting of reserves into future and Apache may also choose not to exploit the MW reserves at all. As some of MW’s reserves are actually real options‚ the APV valuation
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evidence on earnings management. (Journal of Business‚ 2003‚ vol. 76‚ no. 1) ᭧ 2003 by The University of Chicago. All rights reserved. 0021-9398/2003/7601-0007$10.00 151 We explain why a firm may smooth reported earnings. Greater earnings volatility leads to a bigger informational advantage for informed investors over uninformed investors. If sufficiently many current shareholders are uninformed and may need to
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capital market using a portfolio model. The analysis reveals that in determining the asset composition ratio in Japan‚ the correlation coefficient between the interest rate and stock prices as well as the stock price volatility plays a more important role than the interest rate volatility. We also show that in the present circumstances‚ the stockholding ratios of most financial institutions in Japan are higher than the
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References: Acker‚ D. (2002). Implied Standard Deviations and Post-earnings Announcement Volatility. Journal Of Business Finance & Accounting‚ 29(3/4)‚ 429. Andreas‚ J.‚ & Pascal‚ J. (2013). Forecasting the pulse: How deviations from regular patterns in online data can identify offline phenomena. Internet Research‚ 23(5)‚ 589 - 607. doi:http://dx
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Cruz‚ USA NBER‚ USA University of California‚ Los Angeles‚ USA d Bates College‚ USA b c a b s t r a c t Jel classification: F15 F31 F32 F36 O13 O54 Keywords: Terms of trade The real exchange rate International reserves Commodity price shocks Volatility Exchange rate regime We analyze the way in which Latin American countries have adjusted to commodity terms of trade (CTOT) shocks in the 1970– 2007 period. Specifically‚ we investigate the degree to which the active management of international
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S&P CNX Nifty in terms of returns and volatility. The impact on S&P CNX Nifty has been studied prior to and subsequent to budget day .The periods have been segregated into short-term‚ medium-term‚ and long-term periods. With regard to return the result proves that budgets have the maximum impact in the short term period‚ with some impact extending into the medium-term and no significant impact at all on long- term average returns. With regard to volatility the result indicates that the long
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Options‚ Futures‚ and Other Derivatives‚ 8th edition‚ United States of America: Prentice Hall McDonald‚ L.R. (2013): Derivatives Markets‚ 3rd edition‚ United States of America: Prentice Hall Simion‚ D. and Ispas‚ R: Aspects Regarding the Influence of Volatility on the Option’s Price‚ (unpublished) thesis‚ Faculty of Economics and Business Administration‚ University of Craiova. Numa Option Calculator http://www.numa.com/cgi-bin/numa/calc_op.pl
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and investment bankers routinely fudge their CAPM estimates‚ because experience and intuition tell them the model produces inappropriate discount rates. CAPM has three main problems: First‚ beta is a measure of both a stock’s correlation and its volatility‚ which may lead to inaccurate results; the second problem with
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1‚ which some would call a defining moment of the century one that sowed the seeds not just of the Second World War but of Communism‚ Nazism‚ the Holocaust‚ and the Gulag‚ among others. Of course all these global events had extreme effect on the volatility of the stock market throughout the century‚ including the deflation in the 1930s and the inflation of 1970s. I will start with the 1910s that showed a steady decline in the share prices and triple digit inflation‚ which triggered a bear market effect
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