Publications
Publications
- March 1996
- HBS Case Collection
Telmex PRIDES
By: Kenneth A. Froot and Mark Seasholes
Abstract
The case examines an issue by a Mexican development bank of PRIDES written on Telmex stock. PRIDES are a dividend-enhanced security which are exchangeable into shares of the underlying stock. The focus is on pricing these instruments, which involve large peso-denominated payments at maturities beyond that of the Mexican yield curve. Further, the optionality of the PRIDES is interesting to analyze.
Keywords
Financial Derivatives; Securities; International Finance; Banks and Banking; Financial Instruments; Valuation; Mexico
Citation
Froot, Kenneth A., and Mark Seasholes. "Telmex PRIDES." Harvard Business School Case 296-009, March 1996.