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  • Authors: Varma, Jayanth

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  1. Pitfalls in Single Stock Futures

    Authors: Varma, Jayanth R;

    Reference No: F&A0508 Pages: 8 Published on: 2, July, 2013

    Abstract: The case describes two episodes where the basic valuation model (cost of carry model) for single stock futures appears to break down. The first involves market manipulation and the second involves an unexpected change in the record date for an already announced dividend. This breakdown leads to large losses for ... More

  2. MotherRock LP: Natural Gas Calendar Spread

    Authors: Varma, Jayanth R;

    Reference No: F&A0510 Pages: 7 Published on: 24, July, 2013

    Abstract: The case deals with risk management issues related to a large calendar spread position in a highly seasonal and volatile commodity (natural gas). Apart from fundamental factors affecting the supply and demand for natural gas, the spread is also exposed to transient price movements in the futures market itself. The ... More

  3. Angels and Crowds

    Authors: Varma, Jayanth R; Jacob, Joshy;

    Reference No: F&A0530 Pages: 9 Published on: 30, March, 2016

    Abstract: The case focuses on the key choices and decision issues that entrepreneurs face in the fast evolving mode of startup funding, known as 'crowdfunding'. It is centred around three products which vary significantly on many dimensions such as the level of innovativeness, risk, social good generated by the product, and ... More

  4. Crowd Funding: Concept and Economic Rationale

    Authors: Jacob, Joshy; Varma, Jayanth R;

    Reference No: F&A0530TEC Pages: 14 Published on: 30, March, 2016

    Abstract: Crowfunding is a relatively new way of raising capital for early stage entrepreneurial ventures. It involves raising funds from a large number of individuals in small denominations. The note discusses various aspects of the different forms of crowfunding. It describes the mechanics involved in the most popular form of crowfunding ... More

  5. Hundred Million Dollar Beta

    Authors: Varma, Jayanth R.; Virmani, Vineet;

    Reference No: F&A0534 Pages: 8 Published on: 11, July, 2016

    Abstract: This case is about the practical and conceptual issues involved in estimating the beta of a company for the purpose of computing the cost of capital using the CAPM (Capital Asset Pricing Model). In many applications of the CAPM in the classroom, the beta is assumed to be known or ... More

  6. Swiss Roll (B)

    Authors: Varma, Jayanth R.; Virmani, Vineet;

    Reference No: F&A0532(B) Pages: 26 Published on: 7, July, 2016

    Abstract: ln the aftermath of global financial crisis of 2008 and the ensuing capital flows into Switzerland, the Swiss National Bank (SNB) decided to peg Swiss Franc (CHF) to the Euro (EUR), and announced that it would not let CHF go beyond 1.20 starting 6 September, 20 11. With ever-increasing capital flows, maintaining the peg required ... More

  7. Swiss Roll (A)

    Authors: Varma, Jayanth R.; Virmani, Vineet;

    Reference No: F&A0532A Pages: 30 Published on: 30, March, 2015

    Abstract: In September, 2011, to prevent its currency from appreciating after the Global Financial Crisis, the Swiss National Bank (SNB) decided to peg its currency to EUR and announced that it would not let CHF go beyond 1/1.20 EUR. Maintaining the peg required the SNB to purchase foreign currency assets virtually endlessly in ... More

  8. The Mispriced ADRs of Allied Irish Banks

    Authors: Jacob, Joshy; Varma, Jayanth R.;

    Reference No: F&A0519 Pages: 9 Published on: 31, March, 2015

    Abstract: After the global financial crisis of 2008, Allied Irish Banks (AIB) was rescued by the Irish government.During 2013 and 2014, the tiny fraction of shares remaining with the public appeared to be vastly overvalued in the Irish stock market. The American Depository Receipts (ADRs) of AIB appeared to be overvalued even relative ... More

  9. Great Northern Iron Ore Properties

    Authors: Jacob, Joshy; Varma, Jayanth R.;

    Reference No: F&A0518 Pages: 8 Published on: 1, December, 2015

    Abstract: The case presents a context of irrational pricing in a stock and demonstrates the possible role of investor heuristics operating in the financial markets. The case is ideal in a course on behavioral finance to teach topics like the limits to arbitrage or the influence of various heuristics in financial ... More

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