Merrill Lynch's Equity Derivatives Group needed to encourage the direction of conversion premium for MoGen and the best coupon rate and the prospective investors in the problem of MoGen.
MoGen, Inc. Case Study Solution
This pricing decision requires pupils comprehend the concept of value that is adaptable as the sum of a straight bond in addition to the conversion option. Valuing the conversion option as a call option requires the approximation of the Black-Scholes model, with the volatility being a particularly tough input. The case was created for students who already have a fundamental knowledge of bond valuation and option-pricing principles and works nicely with MBA, undergraduate, and executive education crowds. The teacher may select to instruct the case in two or one class period.
PUBLICATION DATE: October 14, 2008 PRODUCT #: UV1054-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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