Chrysler's Warrants: September 1983
Bruner, Robert F.
Chrysler's Warrants: September 1983
F-0682 | Published March 28, 1986 | 15 pages Case
Collection: Darden School of Business
Product Details
This case is a vehicle for discussing the theory and practice of option pricing. The three opportunities for option-pricing analysis are (1) valuation of the warrants proposed as an equity kicker to the government’s loan guarantee as of May 1980; (2) evaluation of the economic fairness of the loan guarantee itself; and (3) valuation of the warrants again in September 1983.
The pedagogical issues in this case are to establish the determinants of an option’s value, to see the correspondence of an option to loan guarantees and other financial phenomena, and to use the Black-Scholes option-pricing model
Get Ahead in Class
Clear, Complete, and Concise: Avoiding t...
Lipson, Marc L.
Business Valuation in Mergers and Acquis...
Schill, Michael J....
A Brief Introduction to Macroeconomics
Murphy, Daniel
Moral Theory, Frameworks, and the Langua...
Wicks, Andrew C.; ...
Three Empirical Methods for Calculating ...
Zhang, Zhihao; Whi...
The Basics of Multivariate Regressions i...
Batova, Tatiana
Advanced Tableau Tips and Tricks
Palomba, Anthony
Digital Marketing Metrics: Measuring Wha...
Venkatesan, Rajkum...
Disruption, Response, and Transformation...
Chen, Ming-Jer; Mc...
Using AI to Expand Your Leadership Commu...
Murray, Meghan
Understanding Organizational Culture: An...
Martin, Sean; Kemp...
A Brief Introduction to Managerial Accou...
Lynch, Luann J.
How to Prototype a Prototype
Chao, Raul O.
The Strategist’s Toolkit
Lenox, Michael; Ha...
Finance People
Schill, Michael J.