個案總覽

Options trading is an appealing investment alternative that can enable investors to profit from both share price movements and non-volatile market environments. This note provides a guide for entry-level options traders and is a logical progression from An Introduction to the Pricing of Options (905N14). The note reviews characteristics of options and the factors affecting their valuation, and it outlines several trading mechanisms that new options traders might use as they seek their most effective strategies, including long call, short put, bull call spread, short call, long put, bear put spread, short straddle, short strangle, long butterfly, long straddle, and long strangle.

Student spreadsheet for case W17219.

Spreadsheet to accompany product 9B17N009.

In November 2014, an intern at Top Dog Wealth Management in Brisbane, Australia, was assisting with a market evaluation and company evaluation for Medibank Private Limited (Medibank). The upcoming Medibank initial public offering (IPO) was set to be one of Australia’s largest and was expected to generate more than AU$4 billion from shareholders who were keen to own a piece of the country’s largest private health insurer. Because the intern was new to the deal, her supervisor gave her access to his notes and directed her to use Bloomberg terminals. As she read through this material, the intern pondered some important questions: What was Medibank worth? Which valuation methods should she use?

Instructor Spreadsheet to accompany product 9B17N009.

In November 2014, an intern at Top Dog Wealth Management in Brisbane, Australia, was assisting with a market evaluation and company evaluation for Medibank Private Limited (Medibank). The upcoming Medibank initial public offering (IPO) was set to be one of Australia's largest and was expected to generate more than AU$4 billion from shareholders who were keen to own a piece of the country's largest private health insurer. Because the intern was new to the deal, her supervisor gave her access to his notes and directed her to use Bloomberg terminals. As she read through this material, the intern pondered some important questions: What was Medibank worth? Which valuation methods should she use?

In August 2013, an intern at Slatestone Group, an Arizona-based boutique investment bank, was working on a targeted sell-side deal. Paterson Publishing, a Fortune 200 company, had expressed interest in acquiring Slatestone's client Bluntly Media Holdings, a private direct marketing agency. The intern was assigned to help prepare the deal marketing material and assist with the valuation assessment of Bluntly Media. He needed to use a variety of valuation methods and propose a strategy that could assist Bluntly Media in attaining a higher price.

Student spreadsheet for W14730.

Student spreadsheet for product 9B14N038.

In August 2013, an intern at Slatestone Group, an Arizona-based boutique investment bank, was working on a targeted sell-side deal. Paterson Publishing, a Fortune 200 company, had expressed interest in acquiring Slatestone’s client Bluntly Media Holdings, a private direct marketing agency. The intern was assigned to help prepare the deal marketing material and assist with the valuation assessment of Bluntly Media. He needed to use a variety of valuation methods and propose a strategy that could assist Bluntly Media in attaining a higher price.

Instructor spreadsheet for product 8B14N038.

Excel spreadsheet for instructors.

Excel spreadsheet for students.

Student spreadsheet for 908N20.

This note provides an overview of Initial Public Offerings (IPOs) and addresses the methods used to value companies undergoing an IPO. It begins with a brief introduction to IPOs and the rationale behind going public, followed by an analysis of IPOs from the investor’s perspective. Next, the IPO process is outlined and explained, including the underwriter choice, selling procedure, pricing and activities in the aftermarket. Lastly, the note examines the valuation methodology used in the pricing stage of IPOs. This includes the discounted cash flow method, the use of market multiples of comparable firms, as well as other situational considerations when determining the initial price per share range and final offering price.

This note provides an overview of Initial Public Offerings (IPOs) and addresses the methods used to value companies undergoing an IPO. It begins with a brief introduction to IPOs and the rationale behind going public, followed by an analysis of IPOs from the investor's perspective. Next, the IPO process is outlined and explained, including the underwriter choice, selling procedure, pricing and activities in the aftermarket. Lastly, the note examines the valuation methodology used in the pricing stage of IPOs. This includes the discounted cash flow method, the use of market multiples of comparable firms, as well as other situational considerations when determining the initial price per share range and final offering price.

Joseph Vigneault and his entrepreneurial partners wanted to raise $500,000 to pursue a new venture through the purchase of a currently existing company in the $4,000,000-5,000,000 price range. A boutique investment bank introduced them to the features of the Capital Pool Company (CPC) program. Vigneault needed to decide if a CPC was an option that he and his partners should consider. He needed to consider the effect on their ownership stake in the company and calculate the return on their investment.

The vice president of operations for Acpana Business Systems Inc., a Canadian software development and backup-as-a-service provider located in Toronto, Canada, is concerned that the recent appreciation of the Canadian dollar is significantly affecting Acpana’s revenue and undermining the company’s organic growth. The case focuses on understanding and quantifying the risks associated with exchange rate fluctuation and its impact on a firm’s revenues and costs. The case introduces instruments available to hedge risk, including forward contracts and put and call options.

Joseph Vigneault and his entrepreneurial partners wanted to raise $500,000 through the purchase of a currently existing company in the $4 million to $5 million price range in order to pursue a new venture. A boutique investment bank introduced them to the features of the Capital Pool Company (CPC) program. Vigneault must decide if a CPC is an option he and his partners should consider. He must consider the effect on their ownership stake in the company and calculate the return on their investment. The case is focused on the quantitative and qualitative decision factors that go into deciding how to finance a new business venture and exposes students to the unique CPC program offered by the TSX Venture Exchange.

Spreadsheet for product 9B05N009.