WORLD ADVANCED CORPORATE FINANCE BELZE Loïc Financial Options Lecture 7 – Chapter 20 ADVANCED CORPORATE FINANCE – BELZE Loïc – Adapted from 2011 Berk & DeMarzo Pearson Education 7 - 20 - 1 www.em-lyon.com © EMLYON School EMLYON Business 2011 Chapter Outline • • • • • • 20.1 – Option Basics 20.2 – Option Payoffs at Expiration 20.3 – Put-Call Parity 20.4 – Factors Affecting Option Prices 20.5 – Exercising Options Early 20.6 – Options and Corporate Finance ADVANCED CORPORATE
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an announcement of the dividend amount‚ which had not yet been determined. The board would meet soon to review EMI’s annual results‚ 1 International Federation of Phonographic Industry (IFPI)‚ “IFPI: 07 Digital Music Report‚” January 2007. This case was written by Elizabeth W. Shumadine (MBA ’01)‚ under the supervision of Professor Michael J. Schill‚ based on public information.
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Corporate Finance Career Overview If you work in private enterprise‚ your company measures its success at the end of the year by comparing how much money it made to how much it spent. If it has made more than it has spent‚ it was a good year. If it has made less than it has spent‚ it was a bad year—or the company is in an investment phase. (In other words‚ like Amazon.com‚ it spent more than it made because the company and its investors believed it would realize a profit in the near future
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Introduction To Corporate Finance: A division or department that oversees the financial activities of a company. Corporate finance is primarily concerned with maximizing shareholder value through long-term and short-term financial planning and the implementation of various strategies. Everything from capital investment decisions to investment banking falls under the domain of corporate finance. Corporate finance is the funding provided to support the operations of the venture itself‚ as distinct
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Abstract Bridgeit Corporate Solutions acts as an interface between student and the corporate industry‚ rather a employer and a potential employee. It conducts assessment for students online/offline and provides a platform for the students to compete with peers at the national and international level‚ employers benefit by increasing their footprints to remote education institutions with a click of mouse and also it provides a safe and secure method of assessment. It is developed by CyberCure Technologies
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IMBA -FIN 6425 – Quiz 1 Corporate Finance - Solution– Nimalendran This is an individual quiz and you should submit the answers on-line by the scheduled date. You are allowed to use any resources EXCEPT help from any other person. You are allowed to use EXCEL for the calculations. 1. Barkley Credit Union sets a low annual percentage rate (5%) for all its credit card customers instead of basing the interest rates on the customers’ credit scores. Consequently Barkley is exposed to ______________
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Corporate Business Finance Seminar 5 Project Finance Lauren Leigh Essaram 207507339 Ruvimbo Mukorera 206525531 27 September 2010 Submitted in partial fulfilment of the duly performed requirement of International Business Finance‚ School of Economics and Finance‚ University of KwaZulu-Natal Abstract Non-recourse financing has grown in popularity‚ especially in developing countries. It has done so more specifically in the basic infrastructure‚ natural resources and also in the energy
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Week 1: Introduction to Corporate Finance 1.4. Assignment 1a Due date: January 30‚ 2011 Instruction: Please submit your assignment as an attachment to my Blackboard E-mail by midnight on the due date Assume that you recently graduated with a degree in finance and have just reported to work as an investment advisor at the brokerage firm of Balik and Kiefer Inc. One of the firm’s clients is Michelle Dellatorre‚ a professional tennis player who has just come to the United States from Chile
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Unit 1 – Case Analysis- “The Time Value of Money: Natasha Kingery Case.” FIN 605 – Financial Economics Dr. Professor February 24‚ 2012 University Introduction Here is a case about Natasha Kingery‚ 30 years old and has a Bachelor of Science degree in computer science. She is currently employed as a Tier 2 field service representative for a telephony corporation located in Seattle‚ Washington‚ and earns‚ $38‚000 a year that she anticipates will grow at 3% per year. Natasha hopes to retire
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The Objective in Corporate Finance “If you don’t know where you are going‚ it does not matter how you get there” Aswath Damodaran Stern School of Business Aswath Damodaran 2 First Principles Invest in projects that yield a return greater than the minimum acceptable hurdle rate. • The hurdle rate should be higher for riskier projects and reflect the financing mix used - owners’ funds (equity) or borrowed money (debt) • Returns on projects should be measured based on cash flows
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