公司理财第二十二章.pptVIP

* The replicating portfolio consists of buying one share of stock today and borrowing the present value of $21.25. The payoffs to the portfolio are twice those of the call; therefore, the portfolio is worth twice as much as a call. Since we can value the portfolio, we can value the call. * Used the options calculator at Numa to compute the equity value * MV of assets = current MV + NPV We assume no increase in debt as a result of the project. * This discussion is consistent with Selfish Strategy 1 discussed in the chapter on bankruptcy. Note, this is an optimistic example, as it assumes the op