Corporate Finance 11

Corporate Finance 11 - 10 20 30 40 50 Call 30 Put Call...

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Ramsync Monday, November 08, 2010 8:06 AM NPV= 33m Invest 900m Cash flows 867m Derivative Something of value depends on value of something else Call option Gives holder the right to buy underlying at strike/exercise prices for a set period of time. Put Option Right to sell X=20$ writer=seller Stock price
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Unformatted text preview: 10 20 30 40 50 Call Payoff 10 20 30 Put + + Call Writer -10-20-30 Put Sell--Same future payoffs means prices right now should be equal- law of one price C-P=S-PV(x) Put-call parity Ramsync MRAM + Growth option-NPV SDRAM needs to be at least 33mil...
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