YoVDO

Option Pricing and Applications in Capital Budgeting and Corporate Finance

Offered By: New York Institute of Finance via edX

Tags

Trading Courses Corporate Finance Courses Capital Budgeting Courses Black-Scholes Model Courses Decision Trees Courses Option Pricing Courses

Course Description

Overview

  • In this course, we’ll look at the elemental features of basic call and put options and identify the factors which are the key determinants of option values.

  • We’ll also look at the characteristics and methodology used to estimate option values: Black-Scholes and binomial option pricing models.

  • In this course, we’ll also define the term “real option” and draw decision trees to represent alternative decisions and potential outcomes in an uncertain economy and describe three types of real options—timing, growth, and abandonment—and explain why it is important to consider those options when evaluating projects.

  • We’ll explain how an investment for which a negative NPV is projected can have a positive NPV once any embedded real options are properly included in the evaluation as well as describe other methodologies businesses sometimes use to decide among investment projects: Equivalent Annual Benefit, Profitability Index and Hurdle Rate.

  • We’ll wrap up the course with a look at the option equivalents of corporate securities and explain how any insights obtained can be used in determining optimal investing or issuance strategies.

This course is part 4 of the New York Institute of Finance’s Corporate Finance & Valuation Methods Professional Certificate.


Taught by

Douglas Carroll

Tags

Related Courses

Introduction to Corporate Finance
Wharton School of the University of Pennsylvania via Coursera
Financing and Investing in Infrastructure
Università Bocconi via Coursera
M&A: Free Cash Flow (FCF) Modeling
New York Institute of Finance via edX
企业金融概论(中文版)
University of Pennsylvania via Coursera
Introducción a las Finanzas Corporativas
University of Pennsylvania via Coursera