Financial derivatives: arundel partners: the sequel project estimation of parameters for black-scholes studio/movie title pv of cash inflows years 1 mca universal parenthood 1001 born on the fourth of july 745 field of dreams 591 uncle buck 600 sea of love 535 always 343 n. Black scholes table gives a factor that is closer to 355% than it is to 393% a bigger table gives a value of 363% based on this information, what is the value per sequel right at time 0. Conversely, arundel believes that by valuing these rights using a black-scholes option pricing model, they can calculate a value for the rights to produce these sequels and take a position by investing in a portfolio conformed of these rights. With the black scholes model, arundel partners can accurately estimate all the up state and down state movements in the value of this investment this model does not depend on any kind of expected returns and the risk aversion of arundel does not affect the value of this investment.
View lynn chang’s profile on linkedin, the world's largest professional community lynn has 7 jobs listed on their profile see the complete profile on linkedin and discover lynn’s connections. Arundel partners – the sequels project after evaluation of the proposed acquisition of the movie sequel rights, we recommend to offer movie studios as a per-movie price to purchase the sequel rights for their entire portfolio of movies the studios are going to produce over the next year. The partners want to buy a portfolio of rights in advance rather than negotiating film-by-film to buy them because it is of critical importance to arundel that a number of films and a price per film are agreed upon before either arundel or the studio knows which films would generate the option of a sequel.
The black-scholes model applies when the limiting distribution is the normal distribution , and explicitly assumes that the price process is continuous and that there are no jumps in asset prices. 1 introduction in 1992, arundel partners was looking into the idea of purchasing the sequel rights associated with films produced by one or more major movie studios. Academiaedu is a platform for academics to share research papers. Black–scholes, cash flow, • the principals of arundel partners think they can make money buying movie sequel rights because they can use unpredictability of a movie’s success to their advantage this can be done by exercising the right if the movie is a success.
Financial derivatives: arundel partners: the sequel project boris agababov ekaterina kouznetsova alexander nagornov alexander parkhomenko introduction of arundel sequel project innovative idea: purchase sequel rights for films produced by one or more major us movie studios. Free essay samples main menu free essay samples about us login hire writer contact us. The arundel partners' believe that they can make money on this project as it allows them to capitalize on the idiosyncratic risk of the motion picture why this is an attractive project essay sample assumptions of our dcf analysis and black-scholes model.
Why do the partners want to buy a portfolio of sequel rights all at once rather than negotiating film-by-film to buy each 2 how should one translate the data in this case to structure the valuation of sequel options to tailor it for the black-scholes approach, to valuing call options on a stock with a traded market value process. Arundel partners: the sequel project boris agababov ekaterina kouznetsova application of black- scholes model • call price documents similar to nagornov arundel case arundel partners cargado por omerakif arundel good sequels cargado por vidya nand sinha. Scribd est le plus grand site social de lecture et publication au monde.
Arundel partners case 1 1 assuming that arundel partners is a purely financial company with no experience in the movie industry whatsoever, one reason for them to buy the rights to create sequels would be to exploit a possible arbitrage in between the price they would pay for an option to sequels and its real value. This is the end of the preview sign up to access the rest of the document unformatted text preview: financial derivatives: arundel partners: the sequel project boris agababov ekaterina kouznetsova alexander nagornov alexander parkhomenko introduction of arundel sequel project introduction of. Case 4-arundel北京大学光华管理学院课件，北大光华mba课件，mba案例，mba教程. Arundel partners case analysis executive summary: a group of investors (arundel group) is looking into the idea of purchasing the sequel rights associated with films produced by one or more major movie studios.
Black scholes model advantages: with the black scholes model firms have the option not to proceed with producing the sequel and incur the negative cash flows some of the inputs required in the model include the stock price volatility. Nagornov arundel case - free download as powerpoint presentation (ppt), pdf file (pdf), text file (txt) or view presentation slides online. The dividend puzzle, f black week 4: arundel partners: the sequel project n9-292-140 (case due: jan 30th) arundel partners case questions dividend policy: signaling (7) (homework 3 due: wed, feb 1st at noon) - event study evidence - asymmetric information. Arundel partners the sequel project case study outline executive summary 2 summary of facts 3 statement of problem 3 investment analysis 4 valuation.