TAILIEUCHUNG - Lecture Managerial finance - Chapter 9: Financial options and applications in corporate finance

Lecture Managerial finance - Chapter 9 provides knowledge of financial options and applications in corporate finance. This chapter presents the following content: What is a financial option? What is the single most important characteristic of an option? Option terminology. | Chapter 9 Financial Options and Applications in Corporate Finance Topics in Chapter Financial Options What is a financial option? An option is a contract which gives its holder the right, but not the obligation, to buy (or sell) an asset at some predetermined price within a specified period of time. What is the single most important characteristic of an option? It does not obligate its owner to take any action. It merely gives the owner the right to buy or sell an asset. Option Terminology Call option: An option to buy a specified number of shares of a security within some future period. Put option: An option to sell a specified number of shares of a security within some future period. Option Terminology Strike (or exercise) price: The price stated in the option contract at which the security can be bought or sold. Option price: The market price of the option contract. Option Terminology (Continued) Expiration date: The date the option matures. Exercise value: The value of a call option if it were exercised today = Current stock price - Strike price. Note: The exercise value is zero if the stock price is less than the strike price. Option Terminology (Continued) Covered option: A call option written against stock held in an investor’s portfolio. Naked (uncovered) option: An option sold without the stock to back it up. Option Terminology (Continued) In-the-money call: A call whose strike price is less than the current price of the underlying stock. Out-of-the-money call: A call option whose strike price exceeds the current stock price.

• Tài chính doanh nghiệp
• Managerial finance
• Lecture Managerial finance
• Financial statements
• Financial options
• Corporate finance
• Option terminology
• Principles of managerial finance
• Lecture Principles of managerial finance
• Environment of managerial finance
• Financial services
• Career opportunities
• Financial analysis
• Cash flow
• Financial planning
• Time value of money
• Future calue
• Risk and Return Fundamentals
• Interest rates
• Bond valuation
• Stock valuation
• Equity capital
• International managerial finance
• Capital budgeting cash flow
• Incremental cash flows
• Capital budgeting techniques
• Net present value
• The cost of capital
• Cost of long term debt
• Marginal cost
• Breakeven analysis
• Capital structure
• Operating breakeven point
• Working capital
• Current asset management
• Spontaneous liabilities
• Accounts payable management
• Short term loans
• Dividend policy
• The financial market environment
• Corporate governance
• Managerial behavior
• Stock options
• Capital budgeting cash flows
• Payout policy
• Current liabilities management
• Business organization
• Maximize wealth
• Financial securities
• Free cash flows
• Future value
• Present value
• Rates of return
• Balance sheet
• Personal taxes