Sprigg Lane (B)

11 Pages Posted: 12 Jun 2009

See all articles by Robert F. Bruner

Robert F. Bruner

University of Virginia - Darden School of Business

Casey Opitz

University of Virginia - Darden School of Business

Abstract

This case is meant to follow "Sprigg Lane (A)" (QA-0372), which introduces Monte Carlo simulation as a valuation technique. The B case introduces the use of Black-Scholes to treat a capital-budgeting decision as an option. In this case, the decision is whether or not to drill a gas well.

Keywords: capital budgeting, option pricing, security analysis, valuation

Suggested Citation

Bruner, Robert F. and Opitz, Casey, Sprigg Lane (B). Darden Case No. UVA-F-0804, Available at SSRN: https://ssrn.com/abstract=1417815

Robert F. Bruner (Contact Author)

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States
434-924-3823 (Phone)
434-924-0714 (Fax)

HOME PAGE: http://faculty.darden.edu/brunerb/

Casey Opitz

University of Virginia - Darden School of Business

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

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