Publications

June 2007 (Revised January 2009)
Case

Nextel Partners: Put Option

By: Timothy A. Luehrman and Douglas Scott

Nextel Partners' shareholders have voted to exercise a put option that will require the company's largest shareholder, Sprint Nextel Corp., to purchase all the shares it does not already own. However, the put option does not stipulate a price to be paid, but rather a... View Details

Keywords: Mergers and Acquisitions; Stock Options; Price; Public Ownership; Valuation

November 2016 (Revised November 2016)
Supplement

The Galaxy Dividend Income Growth Fund's Option Investment Strategies

By: W. Carl Kester

Keywords: Options; Option Contract; Option Pricing; Derivatives; Mutual Funds; Call Options; Put Options; Stock Options; Risk and Uncertainty; Volatility; Financial Services Industry; United States

May 2009
Teaching Note

Nextel Partners: Put Option (TN)

By: Timothy A. Luehrman

Teaching Note for [207-128] View Details

Keywords: Business and Shareholder Relations; Voting; Price; Public Ownership; Valuation; Financial Liquidity; Stock Options; Management Practices and Processes; Telecommunications Industry

January 2008
Supplement

Nextel Partners: Put Option (CW)

By: Timothy A. Luehrman

Spreadsheet Supplement for [207128]. View Details

Keywords: Telecommunications Industry

March 1973
Article

The Relationship between Put and Call Option Prices: Comment

By: Robert C. Merton

Keywords: Price; Stocks

January 2008
Background Note

Index Options

By: Joshua Coval and Erik Stafford

The goal of this simulation is to understand the patterns in index option prices that are not predicted by the Black-Scholes model. In particular, the simulation focuses on two properties of options prices. First, at-the-money implied volatilities from index options... View Details

Keywords: Volatility; Stock Options; Investment; Price; Profit; Risk Management; Mathematical Methods

01 Apr 2001
News

Tatsuyuki Saeki: Putting Stock in New Options at Nasdaq Japan

After 35 years with IBM, Tatsuyuki Saeki could have chosen to put his feet up and relax — perhaps after a few rounds of golf. But that just isn’t Ted Saeki’s style. Instead, the feisty 60-year-old veteran executive has started a second... View Details

Keywords: Alejandro Reyes; Securities, Commodities, and Other Financial Investments; Finance

January 1982
Article

The Returns and Risk of Alternative Put Option Portfolio Investment Strategies

By: Robert C. Merton, Myron S. Scholes and Matthew L. Gladstein

Keywords: Risk and Uncertainty; Investment; Strategy

September 1992 (Revised September 2010)
Background Note

Executive Stock Options

By: Henry B. Reiling

After a brief comment on the practical problems associated with taxing options and the possible occasions on which taxation might occur, the note describes the current policy imbedded in the Internal Revenue Code and gives examples of this policy in operation. The... View Details

Keywords: Stock Options; Policy; Taxation; Executive Compensation; Employee Stock Ownership Plan

March 1995 (Revised August 1995)
Background Note

Options and Put-Call Parity

By: Andre F. Perold and Wai Lee

Illustrates the payoff structure of various positions involving put and call options and the use of put-call parity in understanding the relationships among various positions. Examines the cases of insured equity, interest rate caps and floors, callable and extendable... View Details

Keywords: Stock Options

Fast Answer

Bloomberg: options

How do I find options information in Bloomberg? Type a company ticker and select OMON (Option Monitor) to view a complete list of currently active options. In the Options Monitor display, calls are... View Details

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

February 1992 (Revised September 1995)
Case

Goldman, Sachs & Co.: Nikkei Put Warrants--1989

By: Peter Tufano

Japanese financial institutions' willingness to sell put options on the Nikkei Stock Average provides investment banks with the raw material from which to create a security that would allow U.S. investors to bet on falls in the Japanese Stock Market. The investment... View Details

Keywords: Debt Securities; Investment Banking; Product Design; Globalized Markets and Industries; Japan; United States

19 May 2003
Research & Ideas

Expensing Options Won’t Hurt High Tech

received for those options. Considering that the market systematically puts a higher value on options than employees do, companies are likely to end up with more cash from the sale of externally issued View Details

Keywords: by Zvi Bodie, Robert S. Kaplan & Robert C. Merton

February 2006 (Revised October 2006)
Case

Veridian: Putting a Value on Values

By: Rakesh Khurana, Joel Podolny and Jaan Margus Elias

David Langstaff, the CEO of Veridian, a defense company, struggles with the decision of selling the company. Langstaff has concerned himself with inculcalating his organization with the values necessary for superior achievement over the long term. But as a fiduciary,... View Details

Keywords: Cash; Corporate Governance; Financial Markets; Law; Leadership; Patents; Values and Beliefs; Service Industry; Aerospace Industry

31 Oct 2007
HBS Case

Climate Change Puts Heat on GMs

Trade Union restrictions on carbon emissions. It has a strong internal culture of environmental responsibility, yet at the opening of the case UBS discovers that its stance on global warming lags behind industry competitors. Is 'rational' The Best Decision? UBS... View Details

Keywords: by Julia Hanna; Energy; Utilities

19 Jan 2017
News

Putting People at the Centre of Health Care

12 Oct 1999
Research & Ideas

Paid for Success: Options for Compensating CEOs

When large public companies perform poorly, do the CEOs running them share the financial pain? That question, according to HBS associate professor Brian Hall, is not answered by looking at their salary and bonus but rather by a careful examination of their stock and... View Details

Keywords: by Judith A. Ross

2016
Working Paper

Options-Pricing Formula with Disaster Risk

By: Robert J. Barro and Gordon Y. Liao

A new options-pricing formula applies to far-out-of-the money put options on the overall stock market when disaster risk is the dominant force, the size distribution of disasters follows a power law, and the economy has a representative agent with Epstein-Zin utility.... View Details

Keywords: Option Pricing; Rare Disaster; Price; Stock Options; Financial Crisis