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  • September 1997 (Revised February 2000)
  • Exercise

Exercises in Option Pricing and Real Option Analysis

By: Benjamin C. Esty
  • Format:Print
  • | Pages:3
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Abstract

Contains five problems, one each on basic option pricing, abandonment value, the value of waiting to invest, contingent claims analysis (equity as a call option), and strategic decision making in an option framework. The goal is for students to recognize option value and to understand how it relates to corporate applications using relatively simple numerical examples. The problems are designed to minimize the complexities inherent in real applications, which can be discussed in the context of case discussions that follow this problem set.

Keywords

Stock Options; Price

Citation

Esty, Benjamin C. "Exercises in Option Pricing and Real Option Analysis." Harvard Business School Exercise 298-053, September 1997. (Revised February 2000.)

About The Author

Benjamin C. Esty

Finance
→More Publications

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More from the Author
  • Bespoken Spirits: Disrupting Distilling By: Benjamin C. Esty and Daniel Fisher
  • Tempur Sealy International (A, B & C) By: Benjamin C. Esty and Daniel Fisher
  • MTN: Unlocking Value While Driving Socioeconomic Progress By: Benjamin C. Esty, Pippa Tubman Armerding and Dilyana Karadzhova Botha
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