Option Pricing - Publications - Faculty & Research

15 Jul 2008
First Look

First Look: July 15, 2008

matched yield spread). The conversion option can be valued using the Black-Scholes call option pricing formula. The key is to recognize that each conversion View Details

Keywords: Martha Lagace

01 Dec 2014
News

Case Study: Growing the Family Business

pricing model, you can try a tiered pricing structure. Option 1: Refundable deposit paid up front plus a loyalty discount. Option 2: Equity... View Details

Keywords: childcare; Finance

Fast Answer

of options going back 13 years. CRB Commodity Yearbook Features historical commodity prices and a brief analysis of various commodities. The Mergent Archive includes .pdf files of the print back to... View Details

05 Sep 2024
Blog Post

District Heating in Denmark: How Fjernvarme Fyn fuels an integrated and sustainable future

its optionality and efficiency. At Fjernvarme Fyn, the system is equipped to produce heat and power using a combination of waste, wood chips, and straw incineration, supplemented by less environmentally friendly View Details

Portrait Project

Tian Tian

I opened the Black-Scholes calculator in my HBS tool kit, trying to figure out the price for my options in life. Although the MBA Program has simplified the puzzle to just four-variable input, I was... View Details

Fast Answer

Bloomberg: real estate information

Follow menus and screen instructions to add more criteria and to see results. Global Property Research Menu Type GPRI and hit GO. Select menu options for pricing and risk/return profiles for property share... View Details

Career Coach

Gail Chang

into all facets of finance through a leadership rotational program. Then she worked as a consultant under the risk management & pricing function of the company. During her RC summer, Gail interned at an investment bank and specialized in... View Details

03 Nov 2008
HBS Case

Economics of the Ethanol Business

10,000 bushels of corn annually. For the farmers, MME offers a potential hedge against the volatility of commodity prices and the hope of a more stable future for their children. "This is also a fascinating entrepreneurial... View Details

Keywords: by Julia Hanna; Agriculture & Agribusiness; Energy

01 Sep 2008
News

Farming for Fuel

2003, the group fans out to test the idea with some 2,500 farmers in the area; after this outreach, MME has 729 members willing to make the minimum investment of $20,000 and 10,000 bushels of corn annually. For the farmers, MME offers a potential hedge against the... View Details

Keywords: Julia Hanna; Animal Production and Aquaculture; Agriculture; Colleges, Universities, and Professional Schools; Educational Services

November 1994 (Revised November 1994)
Case

MW Petroleum Corporation (A)

By: Timothy A. Luehrman, Peter Tufano and Barbara Wall

Amoco Corp. is negotiating to sell a wholly-owned subsidiary, MW Petroleum, to Apache Corp. MW owns large reserves of oil and gas comprising many properties at different stages of engineering, development, and production. The proposed acquisition is a large one for... View Details

Keywords: Acquisition; Business Subsidiaries; Mining; Cash Flow; Stock Options; Financing and Loans; Price; Negotiation; Production; Valuation; Mining Industry

Citation

Educators

Purchase

26 Mar 2025
Blog Post

How to Approach Your Equity Compensation

compensation, here are some key considerations. 1. Gain Clarity on What Your Equity Actually Means Just knowing how many options or shares are in your grant isn’t sufficient to make an informed decision. You’ll likely want to ask your... View Details

08 Jun 2011
Lessons from the Classroom

Twenty-first Century Skill: Trading Carbon Credits

as several states in the West were planning a new joint program. “Those who make poor choices feel the consequences of price uncertainty most deeply.” So clearly it's important for business managers in many industries to understand how... View Details

Keywords: by Julia Hanna; Energy; Utilities

27 Feb 2020
Sharpening Your Skills

How Following Best Business Practices Can Improve Health Care

Either Heal Health Care?A public insurance option could use its scale to hold prices down, but only if the approach avoids the financing gimmicks that are undermining Medicare. Research Papers Cohort... View Details

Keywords: by Sean Silverthorne; Health; Medical Devices & Supplies

September 1999
Case

Sally Jameson - 1999

By: George C. Chacko, Henry B. Reiling, Peter Tufano and Matthew Bailey

Sally Jameson has a large block of appreciated stock, which she is contemplating selling to purchase a home. She is comparing an outright sale, borrowing against the stock, shorting against the box, and a stock loan proposed by a small financial services firm. View Details

Keywords: Asset Pricing; Asset Management; Financial Liquidity; Stocks; Stock Options; Financing and Loans; Financial Services Industry

Citation

Find at Harvard

21 Apr 2009
First Look

First Look: April 21, 2009

experiments to test theoretical predictions of why adoption may be low. Insurance purchase is sensitive to price, with an estimated extensive price elasticity of demand between -0.66 and -0.88. Credit constraints, identified through the... View Details

Keywords: Martha Lagace

Profile

Adam Kanner

percent to 50 percent of tickets to live events go unsold. Reasons for this excess capacity vary, from a hefty rise in ticket prices for concerts and sporting events over the past decade, to a wave of digital entertainment View Details

01 Oct 1998
News

New Loan Program Signals Breakthrough in MBA Financial Aid

fifteen years; and prepayment option without penalty. Previously, access to private loan programs was generally limited to U.S. citizens and permanent residents with a strong credit history. These loan programs typically required either a... View Details

29 Sep 2015
Research & Ideas

Work 3.0: Redefining Jobs and Companies in the Uber Age

today are still employees, the contractor option gives a company flexibility in building its workforce" Although most workers today are still employees, the contractor option gives a company flexibility... View Details

Keywords: by Andrei Hagiu; Transportation; Web Services

07 Oct 2002
Research & Ideas

What Leaders Need to Do To Restore Investor Confidence

insufficient institutional checks and balances. At Enron at the end of 1999, the options that were vested were worth $2.4 billion. That is too much temptation to put in front of people—temptation to sell out secretly, "cooking the... View Details

Keywords: by Harvard Management Update

19 Nov 2014
HBS Case

Marketing Marijuana

consider the illegal market. Options here include trying to scam a red card for access to medicinal marijuana at a medical dispensary, where prices are reduced due to lower state and municipal taxes. Another... View Details

Keywords: by Michael Blanding; Food & Beverage

Publications