Real Options in Theory and Practice Answers to Selected End-of-Chapter Exercises Graeme Guthrie This document lists the final answers to selected exercises. A full solutions manual (with answers and working for all exercises) is available for instructors who adopt the book as a textbook. Chapter 2 2.1. (a) $32 million. (b) $29 million. (c) $31 million. Chapter 3 3.1. (a) πu = 0.302‚ πd = 0.698‚ V = 9.2566. (b) A = −0.9434‚ B = 0.15‚ V = 9.2566. 3.3. V = 10.38. 3.5. βx = 1.0: K = 0.9519
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Option F: Microbes and Biotechnology Diversity of Microbe F.1.1 Outline the classification of living organisms into three domains. Three domains of living organisms: 1. Archaea - very primitive; live in extreme habitats 2. Eubacteria - more advanced 3. Eukaryota - all life forms with eukaryotic cells (have a nucleus) Use of ribosomal RNA sequences for classification rRNA is found in all cells rRNA is easy to isolate Analyzed to determine the exact sequence of nucleotide bases
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Laura Martin: Real Options and the Cable Industry Introduction Laura Martin‚ an equity research analyst for cable stocks‚ believes that the best way to value cable stocks is through creative methods such as real options and not through more traditional or typical valuation methods such as EBITDA multiples‚ ROIC analysis and DCF analysis. In 1999 she presented at the Credit Suisse First Boston Broadband conference‚ where she wanted to portray the message that real options is a superior valuation
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happen to find offensive” Children’s Online Protection Act (COPA) Exemplifies the protective approach Eg.companies verify viewer’s age before showing online material that is deemed How Spamming Works: How Censorship Works: Case Study 1: Censorship Google Rethinks China E-Commerce In an attempt to capture the global eCommerce market‚ Google introduced a Chinese version of Google.com in 2000. Around the same time‚ the Chinese government was developing an Internet infrastructure
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.......................................................................... (Total 3 marks) 2. no two species can coexist in same niche; one is displaced / one survives; one species has an advantage over competitor / species compete with each other; description of (Gause’s) experiments with Paramecium; [3] 3. Outline the biological consequences of releasing raw sewage into a river. ................................................................................................
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Explain how the ‘Ansoff matrix’ can be applied to help develop strategic marketing options for an enterprise. What other analytical tools and techniques can be employed to develop alternative marketing strategies? Table of contents 1. Introduction 2. The Ansoff Matrix 3. Market Penetration 4. Product Development 5. Market Development 6. Diversification 7. Limitations of the Ansoff matrix 8. Other analytical tools and techniques 9. Conclusion 10. References Introduction
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76 CHAPTER 7 CURRENCY FUTURES AND OPTIONS MARKETS This chapter describes foreign currency futures and options contracts and shows how they can be used to manage foreign exchange risk or take speculative positions on currency movements. It also shows how to read the prices of these contracts as they appear in the financial press. SUGGESTED ANSWERS TO CHAPTER 7 QUESTIONS 1. On April 1‚ the spot price of the British pound was $1.86 and the price of the June futures contract was $1.85. During
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“PROJECT REPORT SYNOPSIS” Title of the project:- “A Study on Comparative Analysis of Mutual Fund and Other Investment Options” Working title- “A Study on Comparative Analysis of Mutual Fund and Other Investment Options” Purpose- The main purpose of doing this project was to know about mutual fund and itsfunctioning. This helps to know in details about mutual fund industry right from itsinception stage‚ growth and future prospects.It also helps in understanding different schemes of mutual
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#1 – Laura Martin: Real Options and the Cable Industry 1. Consider the multiples analysis developed in Exhibits 2‚5 & 6 Please describe the method of ‘Multiples’ using case numbers and answer to the following questions: 1.1. What assumptions does this analysis rely upon? 1.2. How is Martin’s regression analysis different from/similar to traditional multiples analysis? 1.3. Do you agree with her interpretation of the regression analysis? 2. Consider the DCF analysis presented in Exhibit 7
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CAUSES OF BANK DISTRESS AND RESOLUTION OPTIONS IN NIGERIA. INTRODUCTION A meaningful analysis of causes of bank distress and the options for resolution would probably need to be preceded by a brief discussion of the roles of banks in an economy. Bank’s role in any financial system is quintessentially financial intermediation. In this regard‚ bank’s mobilize financial resources from surplus economic units for on lending to the deficit units. In mobilizing deposits‚ banks issue demandable claims
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