Joshi and Staunton [<italic>Quantit. Finance</italic>, 2012, <bold>12</bold>, 17--20] have commented on the paper by Prékopa and Szántai [<italic>Quantit. Finance</italic>, 2010, <bold>10</bold>, 59-74] and criticized the statement that the binomial tree method overestimates the option price, under some condition. In this paper we present our more...

<Para ID="Par1">Corporate Mergers and Acquisitions (M<InlineEquation ID="IEq1"> <EquationSource Format="TEX">$$ { \& }$$</EquationSource> <EquationSource Format="MATHML"> <math xmlns:xlink="http://www.w3.org/1999/xlink"> <mo>&</mo> </math> </EquationSource> </InlineEquation>As) are notoriously complex, and risk management is one of the essential aspects of the analysis process for decision-making on M<InlineEquation ID="IEq2"> <EquationSource Format="TEX">$$ { \& }$$</EquationSource> <EquationSource Format="MATHML"> <math xmlns:xlink="http://www.w3.org/1999/xlink"> <mo>&</mo> </math> </EquationSource> </InlineEquation>A deals. Empirically, we see that some M<InlineEquation ID="IEq3"> <EquationSource Format="TEX">$$ { \& }$$</EquationSource> <EquationSource Format="MATHML"> <math xmlns:xlink="http://www.w3.org/1999/xlink"> <mo>&</mo> </math> </EquationSource> </InlineEquation>A transactions are not successful...</equationsource></equationsource></inlineequation></equationsource></equationsource></inlineequation></equationsource></equationsource></inlineequation></para>