A recent decision of the Securities and Exchange Commission secured the International Business Machines Corporation (IBM) the opportunity to sell put options on its own shares. IBM Assistant Treasurer is considering the merits of selling puts in connection with the Company continuing need, to buy back shares in order to meet the needs of its Employee Stock Purchase Program (ESPP). The strategy of the reporting year, the proceeds from the sale of puts to use to offset the price of the shares reputation is … Read more »

A recent decision of the Securities and Exchange Commission secured the International Business Machines Corporation (IBM) the opportunity to sell put options on its own shares. IBM Assistant Treasurer is considering the merits of selling puts in connection with the Company continuing need, to buy back shares in order to meet the needs of its Employee Stock Purchase Program (ESPP). The strategy of the year it is, the proceeds from the sale of the sets use to the price of the shares bought back every month for the ESPP balanced. The student has the likelihood of February 1992 to assess sets in the money and determine whether the risks of writing puts sufficiently clear to allow the letter presents a viable, long-term strategy have become.
This is a Darden case study.
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from
Jordan Posell,
Kenneth Eades
Source: Darden School of Business
14 pages.
Publication Date: Sep 29, 1992. Prod #: UV0608-PDF-ENG
International Business Machines Corporation: Issuer put options HBR case solution

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