Boston Properties (B)

Posted: 2 Feb 2012

See all articles by Ryan Taliaferro

Ryan Taliaferro

Acadian Asset Management

Aldo Sesia

Harvard Business School

Date Written: April 5, 2011

Abstract

The B case briefly recounts the action that investment manager Eliza Baena takes in the matter of the Boston Properties (BXP) bonds described in the A case. She must decide what to do next.

Learning Objective: This case may be used: to introduce convertible bonds; to introduce options and options pricing; to introduce payoff diagrams; to introduce the Law of One Price (LOOP) and explain arbitrage, riskless arbitrage, and no-arbitrage bounds; to describe the mechanics of exploiting violations of LOOP; to describe hedge fund financing arrangements; to introduce rehypothecation lending and margin lending and explain how these arrangements can create crisis or contagion among asset classes.

Suggested Citation

Taliaferro, Ryan and Sesia, Aldo, Boston Properties (B) (April 5, 2011). Harvard Business School Finance Case No. 211-041, Available at SSRN: https://ssrn.com/abstract=1997235

Ryan Taliaferro (Contact Author)

Acadian Asset Management ( email )

260 Franklin Street
Boston, MA 02110
United States

Aldo Sesia

Harvard Business School ( email )

Soldiers Field Road
Morgan 270C
Boston, MA 02163
United States
617-496-2085 (Phone)

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