J&L Railroad: The Board Meeting Harvard Case Solution & Analysis

This short case could be handed out at the end of course conversation on "J&L Railroad" [UV0251] in preparation for the following class, or if students are more experienced with hedging and option pricing, the teacher may select to cover in cooperation cases in a single class period. It really is the companion case to "J&L Railroad" [UV0251], and presents more technical issues involving the hedging problem by requiring students to comprehend option-pricing principles.

j&l railroad case solution

j&l railroad case solution

The board enjoys the hedging recommendations of the CFO, but it needs a more cautious evaluation of the bank's price for its risk management commodities: the caps and floors. In addition demanding an understanding of the optional pricing, this case puts particular importance on use and the computation of implied volatility.


This is just an excerpt. This case is about FINANCE & ACCOUNTING

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