References Crz
Bank of International Settlements 2007 Semiannual OTC derivatives statistics Black F 1976 The pricing of commodity contracts. J Financ Econ 3 167-179 Black F, Scholes M 1973 The pricing of options and corporate liabilities. J Politic Econ 81 637-659 Boyle P 1988 A lattice framework for option pricing with two state variables. J Financ Quant Anal 23 1 1-12 Cheng K 2003 Overview of barrier options. Global-Derivatives.com, Working Paper Conze A, Viswanathan R 1991 Path dependent options the case...
Valuation of Convertible Bonds Nyborg 1996
A convertible is a combination of debt and equity option. So, the value of a convertible is the sum of the straight debt and option components. The option embedded in a convertible is an American-type option, not European because the investor can convert any time up to maturity. When pricing a convertible bond, analysts use a two-step process. First, compute the pure bond value of the convertible. This is equal to the net present value of the stated coupons and redemption value, using a series...
References Ygw
Amram M, Kulatilaka N 1999 Real options managing strategic investment in an uncertain world. Harvard Business School Press Amram M, Kulatilaka N 1999 Disciplined decisions aligning strategy with financial markets. Harvard Business Review Amram M, Kulatilaka N 1999 Uncertainty the new rules for strategy. J Business Strategy Amram M, Kulatilaka N 2000 Strategy and shareholder value creation the real options frontier. J Appl Corp Finance 13 2 Brennan MJ, Schwartz E 1992 A new approach to...
Nec 1
The terms of the NEC issue are given in Appendix 2 at the end of the chapter. In addition to the Trust Preferred Securities, NEC offered 100 billion Yen of Euro Yen Convertible Bonds mainly to institutional investors in the Euro market. The terms of the NEC issue are presented in Appendix 3. Mandatory convertibles are equity-linked securities that pay a higher dividend compared to the company's common stock for a certain number of years and then get converted into common shares on a specified...
Warrants
A warrant is an option that gives the holder the privilege of buying a specified number of shares of the company at a specified exercise price at any time on or before the expiration date. Warrants usually come as attachments to bonds to make an issue more attractive to investors. The debenture holder can exercise a warrant. Warrants can also be detached and separately listed on a stock exchange for trading purposes. The issuer of the warrant receives the price of the warrant at the time of...
Types of Capitalism
Broadly, there are two types of capitalism arm's length system e.g., U.S, U.K and relationship-based system e.g., Germany, Korea . In an arm's length market-based Anglo-Saxon system, a financier is protected by explicit contracts as opposed to a relationship-based system, which is largely self-governing parties honor agreements to maintain their reputation. In market-based system, relationship matters less. In a relationship-based system, the lending bank has a close long-term relationship with...
Contributors
Dr. Paul Ali is an Associate Professor in the Melbourne Law School and a member of the Law School's Centre for Corporate Law and Securities Regulation. He has published widely on banking and finance law, corporate governance and institutional investment law, securitization law, and structured finance law. In 2006, he was appointed by the Federal Attorney-General as a member of the Personal Property Securities Review Consultative Group. He is currently undertaking research in connection with a...