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  • All HBS Web  (2,673)
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  • May 2005 (Revised February 2006)
  • Background Note

Introduction to Interest Rate Options

Introduces interest rate derivatives, covering floors, caps, and swaptions. Introduces floors, caps, and swaps by analogy to equity puts, calls, and stocks. As with calls and puts on equity, a put-call parity relationship is shown to exist between caps, floors, and... View Details
Keywords: Interest Rates
Citation
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Chacko, George C., and Anders Sjoman. "Introduction to Interest Rate Options." Harvard Business School Background Note 205-112, May 2005. (Revised February 2006.)
  • June 1988 (Revised August 1988)
  • Case

Air Canada: The Privatization Option

By: Malcolm S. Salter
Keywords: Competition; Corporate Governance; Privatization; Air Transportation Industry; Canada
Citation
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Salter, Malcolm S. "Air Canada: The Privatization Option." Harvard Business School Case 388-156, June 1988. (Revised August 1988.)
  • 2000
  • Working Paper

Stock Options for Undiversified Executives

By: Brian Hall and Kevin J. Murphy
Citation
Related
Hall, Brian, and Kevin J. Murphy. "Stock Options for Undiversified Executives." NBER Working Paper Series, No. 8052, December 2000.
  • 1996
  • Working Paper

Design Options and Design Evolution

By: Carliss Y. Baldwin and Kim Clark
Citation
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Baldwin, Carliss Y., and Kim Clark. "Design Options and Design Evolution." Harvard Business School Working Paper, No. 97-038, November 1996.
  • January 2011 (Revised July 2011)
  • Case

Elizabeth Jacobs: Price-Earnings Ratios and Employee Stock Option Grants

By: David F. Hawkins
Analyst questions the value of accounting measurement of earnings per share and stock option costs for equity valuation purposes. View Details
Keywords: Earnings Management; Business Earnings; Employee Stock Ownership Plan; Stock Shares; Employee Ownership; Stock Options; Equity; Accounting Audits; Valuation; Profit Sharing; Accounting Industry
Citation
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Hawkins, David F. "Elizabeth Jacobs: Price-Earnings Ratios and Employee Stock Option Grants." Harvard Business School Case 111-087, January 2011. (Revised July 2011.)
  • 1 Jun 2010
  • Conference Presentation

Modularity, Options and Design Evolution

By: Carliss Y. Baldwin
Keywords: Design
Citation
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Baldwin, Carliss Y. "Modularity, Options and Design Evolution." Harvard Medical School, Department of Systems Biology, June 1, 2010.
  • Article

Today's Options for Tomorrow's Growth

By: W. C. Kester
Keywords: Growth and Development
Citation
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Kester, W. C. "Today's Options for Tomorrow's Growth." Harvard Business Review 62, no. 2 (March–April 1984): 153–160.
  • August 2000 (Revised July 2001)
  • Case

Laura Martin: Real Options and the Cable Industry

By: Mihir A. Desai and Peter Tufano
CSFB equity research analyst Laura Martin publishes a report on valuing Cox Communications that introduces an innovative approach to valuation. She contends that EBITDA multiple analysis, typical for the cable industry, is flawed because it overlooks the value of the... View Details
Keywords: Valuation; Innovation and Invention; Telecommunications Industry
Citation
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Desai, Mihir A., and Peter Tufano. "Laura Martin: Real Options and the Cable Industry." Harvard Business School Case 201-004, August 2000. (Revised July 2001.)
  • April 2002
  • Case

Sally Jameson: Valuing Stock Options in a Compensation Package (Abridged)

By: Peter Tufano
Details a thinly disguised situation facing a recent Harvard MBA graduate who was forced by a prospective employer to place a dollar value on a grant of stock options. There are two objectives: 1) Serves as an introduction to option valuation, in which students have an... View Details
Keywords: Valuation; Stock Options; Compensation and Benefits
Citation
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Tufano, Peter. "Sally Jameson: Valuing Stock Options in a Compensation Package (Abridged)." Harvard Business School Case 202-117, April 2002.
  • September 2006 (Revised February 2007)
  • Case

Timing of Option Grants at UnitedHealth Group (A)

Faced with press allegations that executives' stock options might have been backdated, the Board of UnitedHealth Group needs to determine whether its accounting for the options was proper, and if not, what the restatement amount should be and what... View Details
Keywords: Governing and Advisory Boards; Ethics; Stock Options; Accounting; Crisis Management; Corporate Governance; Insurance Industry; Health Industry; United States
Citation
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Ferri, Fabrizio. "Timing of Option Grants at UnitedHealth Group (A)." Harvard Business School Case 107-028, September 2006. (Revised February 2007.)
  • spring 1973
  • Article

Theory of Rational Option Pricing

By: Robert C. Merton
Keywords: Theory; Price
Citation
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Merton, Robert C. "Theory of Rational Option Pricing." Bell Journal of Economics and Management Science 4, no. 1 (spring 1973): 141–183. (Chapter 8 in Continuous-Time Finance.)
  • June 2015 (Revised November 2015)
  • Case

Akbank: Options in Digital Banking

By: Rajiv Lal and Esel Çekin
This case discusses the digitalization strategies of a leading bank in Turkey, Akbank, and how to position its digital banking products going forward. The Turkish banking industry was undergoing a transformation prompted by the demands of the country's digitally savvy,... View Details
Keywords: Marketing; Banking; Emerging Market; Regulations; Channels; Digitization; Information Technology; Competition; Brands and Branding; Organizational Change and Adaptation; Emerging Markets; Distribution Channels; Banks and Banking; Digital Transformation; Banking Industry; Financial Services Industry; Turkey
Citation
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Lal, Rajiv, and Esel Çekin. "Akbank: Options in Digital Banking." Harvard Business School Case 515-115, June 2015. (Revised November 2015.)
  • January 1995
  • Supplement

Stermon Mills: An Options Approach

By: Carliss Y. Baldwin and David M. Upton
Allows students to use an alternative method to analyze the case. View Details
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Baldwin, Carliss Y., and David M. Upton. "Stermon Mills: An Options Approach." Harvard Business School Supplement 695-036, January 1995.
  • November 2013
  • Case

Larry Steffen: Valuing Stock Options in a Compensation Package

By: William E. Fruhan and Craig Stephenson
New MBA graduate Larry Steffen has accepted an attractive job offer from Athena Global Technology but must now choose one of two alternative compensation plans. The first compensation plan option includes a base salary plus a $25,000 cash bonus, and the second includes... View Details
Citation
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Fruhan, William E., and Craig Stephenson. "Larry Steffen: Valuing Stock Options in a Compensation Package." Harvard Business School Brief Case 914-517, November 2013.
  • November 1984
  • Background Note

Black-Scholes Option Pricing Program for the HP 12C Calculator

By: Andre F. Perold
Contains a program that can be used on the HP12C pocket calculator to compute the Black-Scholes option price and the associated hedge ratio. The program must be given the following parameters: the exercise price, the risk-free rate, the time to expiration, and the... View Details
Keywords: Stock Options; Investment Funds; Price; Management; Software
Citation
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Perold, Andre F. "Black-Scholes Option Pricing Program for the HP 12C Calculator." Harvard Business School Background Note 285-057, November 1984.
  • summer 1999
  • Article

The Design of Multi-Year Option Plans

By: Brian Hall
Keywords: Financial Instruments
Citation
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Hall, Brian. "The Design of Multi-Year Option Plans." Journal of Applied Corporate Finance 12, no. 2 (summer 1999): 97–106.
  • Article

Four Options for Measuring Value Creation

By: K. Merchant and Tatiana Sandino
Citation
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Merchant, K., and Tatiana Sandino. "Four Options for Measuring Value Creation." Journal of Accountancy 208, no. 2 (August 2009): 34–37.
  • June 2017
  • Article

Options Compensation as a Commitment Mechanism in Oligopoly Competition

By: Jun Ishii and David Hao Zhang
We analyze how CEO stock options compensation can be used as a commitment device in oligopolistic competition. We develop a two-stage model where shareholders choose managerial compensation to commit their managers to being aggressive in equilibrium. Our results may... View Details
Keywords: CEO Compensation; Ceo Risk-taking; Strategic Delegation; Stock Options; Executive Compensation
Citation
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Ishii, Jun, and David Hao Zhang. "Options Compensation as a Commitment Mechanism in Oligopoly Competition." Managerial and Decision Economics 38, no. 4 (June 2017): 513–525.
  • Article

The Trouble with Executive Stock Options

By: Brian J. Hall and Kevin J. Murphy
Keywords: Stock Options; Management
Citation
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Hall, Brian J., and Kevin J. Murphy. "The Trouble with Executive Stock Options." Journal of Economic Perspectives 17, no. 3 (Summer 2003).
  • March 2003 (Revised June 2003)
  • Case

International Securities Exchange, The: New Ground in Options Markets

This case examines the equity options market and studies the major parties involved and the options trading process. It takes an in-depth look at the path taken by the International Securities Exchange as it entered a mature exchange industry and transformed itself... View Details
Keywords: Capital Markets; Investment
Citation
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Chacko, George C., and Eli Strick. "International Securities Exchange, The: New Ground in Options Markets." Harvard Business School Case 203-063, March 2003. (Revised June 2003.)
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