Real options and option-embedded securities / William T. Moore.

Format:

Book

Author/Creator:

Moore, William T. (William Theodore), 1948-

Series:

Wiley finance series

[Wiley finance]

Language:

English

Subjects (All):

Options (Finance).

Physical Description:

vi, 294 pages : illustrations ; 24 cm.

Other Title:

Real options & option-embedded securities

Place of Publication:

New York : John Wiley, [2001]

Summary:

Options are everywhere -- in modern finance applications, embedded in securities, and in ordinary capital projects such as plant construction and equipment acquisition. With Real Options and Option-Embedded Securities, you'll learn proven techniques for valuing and designing these instruments, along with the best ways to employ them strategically in a variety of financing operations. In Real Options and Option-Embedded Securities, William Moore skillfully applies the current thinking and up-to-date knowledge on financial options -- as established over the past few decades -- to everyday business finance decisions. Straightforward explanations and numerous realworld examples show you how to apply financial options strategies to some of your most critical financial decisions.

Drawing upon "contingent claims analysis," Real Options and Option-Embedded Securities reveals how a wide variety of issues confronting managers of today's firms can be successfully analyzed as options. Adhering to that belief, this unique guide features a unified treatment of options as they arise in modern finance applications, while offering a new approach to explaining these complex devices. In exploring other forms of options, Real Options and Option-Embedded Securities discusses options embedded in securities that are used to raise capital, such as convertible bonds, structured convertible preferred stocks, and warrants. You'll also discover how to efficiently use real options -- which can be found within capital projects -- by taking advantage of their unique benefits, namely the flexibility to curtail, time, or expand an investment. With these natural examples, you will come to see how real options may be understood and valued in much the same way as financial options such as puts and calls.

This comprehensive look at options also features a thorough treatment of options employed in risk management. This includes standard products such as futures options and interest rate options, as well as second generation products tailored to a firm's special risk management needs -- floors and collars, cylinder options, binaries and digitals, lookbacks, and interest rate caps.

Real Options and Option-Embedded Securities strives to convey a commonsense understanding of these complex instruments, and this extends to the dense topic of option pricing. This easy-to-follow book brings the admittedly challenging mathematics of modern option pricing theory down to earth, with numerical examples and stories to complement the technical developments. If you are ready to use options to their fullest, you are ready for Real Options and Option-Embedded Securities.

Contents:

2. Option Strategies 21

3. Option Valuation 45

4. Extensions and Analysis of the Option Pricing Models 73

5. Options and Corporate Finance 95

6. Warrants and Rights 113

7. Option-Embedded Securities 135

8. Convertible Securities 159

9. Capital Investment Decisions 187

10. Timing Options 203

11. Real Calls and Puts 221

12. Options in Risk Management 251.

Notes:

Series statement on jacket.

"The Frank J. Fabozzi series"--Jkt.

Includes bibliographical references and index.

ISBN:

0471216593

OCLC:

48754413