Tuesday, January 21, 2014

Options & Options

Well, in the applied corporate finance class of today, Conchita started with discussion on various Option contracts - how their values change depending on the market changes and how these options can be evaluated. Various theories of evaluation, call-put parity equation and all the technical stuff about options was covered in a really simple way of explanation today. I liked this class a lot, for making me understand the nuances of options valuation.
And then, it was time to discuss how the behavior of option contracts can in fact be used to replicate real life valuation scenarios, to give us what are now come to be known as real options :-)
yes, real options can be anything form patents to oil drilling plants, and such projects can be evaluated more accurately using real options methodology, which we will learn in the sessions to follow.
Our group for this class also met to discuss the possible candidates for our presentation at the end of this term. A short and productive meeting it was, I would say :-)
And yes, as there is nothing scheduled for me tomorrow, I decided to come home in the evening and take a brief siesta, before starting with any studying for the day :-)

No comments:

Post a Comment