Chacko, George; Tufano, Peter; Verter, Geoffrey - National Bureau of Economic Research (NBER) - 2000
We study a firm that justifies its novel use of equity derivatives as a cash-flow hedging strategy. Our purpose is to understand the challenge of translating risk management theory into managerial action. Cephalon Inc., a biotech firm, bought a large block of call options on its own stock. If...