| TOPICS | READINGS |
|---|---|
| Role of Risk Management | Gordon-Walker, Anna. "A Feast of Futures." Risk Magazine 19, no. 12 (2006): 46. Tufano, Peter, and Cameron Poetzscher. "Aspen Technology, Inc.: Currency Hedging Review." Harvard Business School Case. Boston, MA: Harvard Business School Publishing. Case: 9-296-027, October 10, 1995. |
| Measuring Risk | Andren, Niclas, Hakan Jankensgard, and Lars Oxelheim. "Exposure-Based Cash-Flow-at-Risk: An Alternative to VaR for Industrial Companies." Journal of Applied Corporate Finance 17, no. 3 (2005): 76-86. Tufano, Peter, and Alberto Moel. "Bidding for Antamina." Harvard Business School Case. Boston, MA: Harvard Business School Publishing. Case: 9-297-054, February 3, 1997. |
| Pricing Risk | Luehrman, Timothy A., Peter Tufano, and Barbara D. Wall. "MW Petroleum Corp. (B)" Boston, MA: Harvard Business School Publishing. Case: 9-295-045, February 27, 1995. |
| Valuation and Capital Budgeting | "Asset Buyers Gamble on Futures Strip." Petroleum Intelligence Weekly, July 3, 2006. Siegel, D., J. Smith, and J. Paddock. "Valuing Offshore Oil Properties with Option Pricing Models." Midland Corporate Finance Journal 5 (1987): 22-30. Bartholomew, Doug. "HP Reinvents, Slowly." CFO.com, March 15, 2005. Davis, Ann. "Tyson Foods Refines a Recipe by Energy Firms." Wall Street Journal (December 1, 2006). White, Gregory L. "Precious Commodity: How Ford's Big Batch of Rare Metal Led to $1 Billion Write-Off." Wall Street Journal, February 6, 2002. Amram, Martha, Fanfu Li, and Cheryl A. Perkins. "How Kimberly-Clark Uses Real Options." Journal of Applied Corporate Finance 18, no. 2 (2006): 40-47. Patel, Navroz. "Piloting a Risk Revolution." Risk Magazine 18, no. 5 (2005). |
| Asset Management | Brennan, Michael, and Eduardo Schwartz. "A New Approach to Evaluating Natural Resource Investments." Midland Corporate Finance Journal 3, no. 1 (1985): 37-47. |
| Trading Operations | Eisenlohr, Emily. "Power Trading 101: The Most Important Things an Energy Company Has to Understand before Taking the Plunge into Power Trading." Derivatives Strategy (December 1999). Braas, Alberic, and Charles N. Bralver. "An Analysis of Trading Profits: How Most Trading Rooms Really Make Money." Journal of Applied Corporate Finance 2, no. 4 (1990): 85-90. Davidson, Clive. "Koch Takes Intelligent Risk to Heart." Risk Magazine 17, no. 11 (2004): 52-54. Campbell, Alexander. "Spreading the Word." Risk Magazine 18, no. 8 (2005). "Banks Tap Jet, Logistics for New Revenue." Petroleum Intelligence Weekly, November 6, 2006. Culp, Christopher L., and Merton H. Miller. "Metallgesellschaft and the Economics of Synthetic Storage." Journal of Applied Corporate Finance 7, no. 4 (1995): 62-76. Mello, Antonio S., and John E. Parsons. "Maturity Structure of a Hedge Matters: Lessons from the Metallgesellschaft Debacle." Journal of Applied Corporate Finance 8, no. 1 (1995): 106-121. |
| Liability Management | Merton, Robert C. "You Have More Capital Than You Think." Harvard Business Review 83, no. 11 (2005): 84-94. "Analyzing Agricultural Inventories." Standard and Poor's RatingsDirect, November 10, 2000. Mello, Antonio S., and John E. Parsons. "Natural Resource Projects: Debt Contracts that Increase Profits, Decrease Defaults." e-lab, October 1989-March 1990. Wood, Duncan. "Putting Energy into Credit." Risk Magazine 18, no. 12 (2005): 58-60. |
| Strategic Hedging | Froot, Kenneth A., David S. Scharfstein, and Jeremy C. Stein. "A Framework for Risk Management." Harvard Business Review 72, no. 6 (1994): 91-102. Mello, Antonio S., and John E. Parsons. "Strategic Hedging." Journal of Applied Corporate Finance 12, no. 3 (1999): 43-54. Carter, David A., Daniel A. Rogers, and Betty J. Simkins. "Hedging and Value in the U.S. Airline Industry." Journal of Applied Corporate Finance 18, no. 4 (2006): 21-33. Gold, Russell. "Investment Forecast: On a Roller Coaster, One Energy Firm Tries Hedging Bets; Natural-Gas Giant Chesapeake Has Expanded Rapidly by Locking in its Revenue; Dangers of Guessing Wrong." Wall Street Journal, November 6, 2006. Tufano, Peter, Geoffrey Verter, and Markus F. Mullarkey. "Cephalon, Inc." Harvard Business School Case. Boston, MA: Harvard Business School Publishing. Case: 9-298-116, April 13, 1998. |
Table of Contents
Study Materials
Readings
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This section includes a list of references for the course.
Good textbooks to utilize as backup references are:
Brealey, Richard A., Stewart C. Myers, and Franklin Allen. Principles of Corporate Finance. Boston, MA: McGraw-Hill, 2006. ISBN: 0073130826.
Grinblatt, Mark, and Sheridan Titman. Financial Markets and Corporate Strategy. Boston, MA: McGraw-Hill, 2002. ISBN: 0072294337.
McDonald, Robert. Derivatives Markets. Reading, MA: Addison-Wesley, 2005. ISBN: 032128030X.
Hull, John. Options, Futures, and Other Derivatives. Upper Saddle River, NJ: Prentice Hall, 2005. ISBN: 0131499084.