Publications
Publications
- February 1992 (Revised September 1995)
- HBS Case Collection
Goldman, Sachs & Co.: Nikkei Put Warrants--1989
By: Peter Tufano
Abstract
Japanese financial institutions' willingness to sell put options on the Nikkei Stock Average provides investment banks with the raw material from which to create a security that would allow U.S. investors to bet on falls in the Japanese Stock Market. The investment bank that seeks to create this new product must decide how to design, produce (hedge), and price the options (Nikkei Put Warrants). Highlights the global nature of new product development in the securities market and provides opportunities for students to make and critique the key decisions involved in creating this new product. Students must consider the costs of production, the preferences of consumers, competitive dynamics, and the pricing of substitutes for the new product.
Keywords
Debt Securities; Investment Banking; Product Design; Globalized Markets and Industries; Japan; United States
Citation
Tufano, Peter. "Goldman, Sachs & Co.: Nikkei Put Warrants--1989." Harvard Business School Case 292-113, February 1992. (Revised September 1995.)
About The Author
