财务管理基础全套配套课件沈洪涛 ch18.ppt

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1、CHAPTER18DerivativesandRiskManagementDerivativesecuritiesFundamentalsofriskmanagementUsingderivativesArestockholdersconcernedaboutwhetherornotafirmreducesthevolatilityofitscashflows?Notnecessarily.Ifcashflowvolatilityisduetosystematicrisk,itcanbeeliminatedbydiversi

2、fyinginvestors’portfolios.ReasonsthatcorporationsengageinriskmanagementIncreasetheiruseofdebt.Maintaintheiroptimalcapitalbudget.Avoidfinancialdistresscosts.Utilizetheircomparativeadvantagesinhedging,comparedtoinvestors.Reducetherisksandcostsofborrowing.Reducethehig

3、hertaxesthatresultfromfluctuatingearnings.Initiatecompensationprogramstorewardmanagersforachievingstableearnings.Whatisanoption?Acontractthatgivesitsholdertheright,butnottheobligation,tobuy(orsell)anassetatsomepredeterminedpricewithinaspecifiedperiodoftime.Mostimpo

4、rtantcharacteristicofanoption:Itdoesnotobligateitsownertotakeaction.Itmerelygivestheownertherighttobuyorsellanasset.OptionterminologyCalloption–anoptiontobuyaspecifiednumberofsharesofasecuritywithinsomefutureperiod.Putoption–anoptiontosellaspecifiednumberofsharesof

5、asecuritywithinsomefutureperiod.Exercise(orstrike)price–thepricestatedintheoptioncontractatwhichthesecuritycanbeboughtorsold.Optionprice–themarketpriceoftheoptioncontract.OptionterminologyExpirationdate–thedatetheoptionmatures.Exercisevalue–thevalueofanoptionifitwe

6、reexercisedtoday(Currentstockprice-Strikeprice).Coveredoption–anoptionwrittenagainststockheldinaninvestor’sportfolio.Naked(uncovered)option–anoptionwrittenwithoutthestocktobackitup.OptionterminologyIn-the-moneycall–acalloptionwhoseexercisepriceislessthanthecurrentp

7、riceoftheunderlyingstock.Out-of-the-moneycall–acalloptionwhoseexercisepriceexceedsthecurrentstockprice.LEAPS:Long-termEquityAnticiPationSecuritiesaresimilartoconventionaloptionsexceptthattheyarelong-termoptionswithmaturitiesofupto21/2years.OptionexampleAcalloptionw

8、ithanexercisepriceof$25,hasthefollowingvaluesattheseprices:StockpriceCalloptionprice$25$3.00307.503512.004016.504521.005025.50Determiningoptionex