Cephalon, Inc.: Taking Risk Management Theory Seriously
Cephalon Inc., a biotech firm, bought call options on its own stock to meet its conditional cash flow needs. We analyze this decision by using the cash flow hedging concepts of Froot et al., (1993. Journal of Finance 5, 1629-1658). We identify the managerial analyses necessary to apply this theory a...
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| Format: | Journal article |
| Published: |
2001
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