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Exercise
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1994
(Revised from original 1993 version)
Corporate Financial Management: Options Exercises
by
Timothy A. Luehrman
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Abstract
This case presents four exercises designed to introduce students to applications of option pricing and decision-tree analysis to real corporate investment problems. Two of the four problems involve decision trees and two involve option pricing. Students should be familiar with basic option pricing theory (Black-Scholes and/or the Binomial Model) before being assigned these exercises.
Keywords: Business Finance;
Financial Management;