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Session 22: Closure on IPOs and Introduction to Real Options
Description
After we got the third quiz done, we moved on to looking at real options in corporate finance and valuation. We started by looking at the basic option pricing models, and the ingredients that make for real option applications - that there be an option at play (with an underling asset and contingent cash flows), that the option have significant economic value (and the importance of exclusivity) and that the conditions for option pricing model hold (that the asset and the option be traded…).
Slides: https://nyu.box.com/s/e0jzx09272hhdze0du1hwc5wv1yfy1ub
Post class test: https://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/postclass/session22Ftest.pdf
Post class solution: https://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/postclass/session22Fsoln.pdf
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