Principles of Corporate Finance

40.37 32.10 36 36 1. 1215 40. 37 0 1 × = P ×U = PU Binomial Pricing ...

40.37 32.10 36 36 1. 1215 40. 37 0 1 × = P ×U = PU 8917 32. 10 0 1 × = P × D = PD Binomial Pricing ...

50.78 = price 40.37 32.10 25.52 45.28 36 28.62 40.37 32.10 36 Pt ×U = Pt+ 1 Binomial Pricing ...

50.78 = price 10.78 = intrinsic value 40.37 .37 32.10 0 25.52 0 45.28 36 28.62 36 40.37 32.10 Binomial Pricing ...

50.78 = price 10.78 = intrinsic value 40.37 .37 32.10 0 25.52 0 45.28 5.60 36 28.62 40.37 (^36) 32.10 [(Ou ×Pu)+(Ud × Pd)]×(e−r∆ ...

50.78 = price 10.78 = intrinsic value 40.37 .37 32.10 0 25.52 0 45.28 5.60 36 .19 28.62 0 40.37 2.91 32.10 .10 36 1.51 [(Ou ×Pu) ...

50.78 = price 10.78 = intrinsic value 40.37 .37 32.10 0 25.52 0 45.28 5.60 36 .19 28.62 0 40.37 2.91 32.10 .10 36 1.51 [(Ou ×Pu) ...

Expanding the binomial model to allow more possible price changes 1 step 2 steps 4 steps (2 outcomes) (3 outcomes) (5 outcomes) ...

How estimated call price changes as number of binomial steps increases No. of steps Estimated value 1 48.1 2 41.0 3 42.1 5 41.8 ...

u Warrants and Convertibles Principles of Corporate Finance Brealey and Myers Sixth Edition Chapter 22 ...

Topics Covered w What is a Warrant? w What is a Convertible Bond? w The Difference Between Warrants and Convertibles w Why do Co ...

Warrant Value Example: BJ Services warrants, January 1999 Exercise price $ 15 Warrant price $ 9 Share price $ 16 BJ Services sha ...

Warrant Value vs. Stock Price Value of warrant Exercise price = $15 Actual warrant value prior to expiration Theoretical value ( ...

United Glue Warrants ‹# shares outstanding = 1 mil ‹Current stock price = $12 ‹Number of shares issued per share outstanding = . ...

United Glue Warrants w United glue has just issued $2 million package of debt and warrants. Using the following data, calculate ...

United Glue Warrants w United glue has just issued $2 million package of debt and warrants. Using the following data, calculate ...

United Glue Warrants w United glue has just issued $2 million package of debt and warrants. Using the following data, calculate ...

United Glue Warrants w United glue has just issued $2 million package of debt and warrants. Using the following data, calculate ...

United Glue Warrants w United glue has just issued $2 million package of debt and warrants. Using the following data, calculate ...

United Glue Warrants w United glue has just issued $2 million package of debt and warrants. Using the following data, calculate ...