Question 1: Why is ethical behavior so critical to the practice of finance?
Question 2: Cite at least three examples of financial managers/corporate executives who did not exercise ethics and the results of their choices.
Question 3: Discuss how corporations can increase their value as a result of non-financial actions.
Question 4: What benefits might a corporation reap if they consider non-financial actions as part of their decision making?
Question 5: Choose two major financial events that occurred in the past. How did each event change the financial landscape?
Discussion:
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Imagine that you are employed as a financial analyst for a mid-size corporation. Answer each of the following questions from that perspective.
- A friend is asking about your work, and wonders why you have to use so many different option pricing formulas in your job. How would you answer your friend's question? Would you advise a potential investor to exercise a call option or a put option? Explain.