Option Pricing Model in Valuing a Company in the Context of Pfizer Dissertation

Option Pricing Model in Valuing a Company in the Context of Pfizer - Dissertation Example His constant guidance and positive attention helped researcher to concentrate more on the research topic. The researcher would also like to thank his other professors for acting as a support system when required along with helping and guiding when needed and required. The support and cooperation of the University in allowing access to the library helped in referring to different study materials that further help in understanding the research topic in a sound manner. The researcher would also like to thank his family for being there as a strong support system often guiding and supporting along with enhancing the level of motivation and excitement through kind and positive feedback. The researcher feels blessed to have friends who not only shared their views and opinions on the research topic bust also brainstormed to add more value to the research topic. Overall, the researcher would like to acknowledge the efforts and support of everyone playing an important role in the entire resear ch process. Without the support and cooperation of above mentioned people, the research would have been an aimless journey lacking depth and understanding. The researcher expresses his deep gratitude for all the support and guidance along with being thankful to everyone for being so kind and supportive throughout the research journey. TABLE OF CONTENTS Chapter 1.Introduction 4 1.1 Introduction to the Research Topic 4 1.2 Research Aims and Objectives/ Questions 5 1.3 Scope of the Research 6 1.4 Rationale for the Research Topic 7 1.5 Limitations of the Research 8 1.6 Methodology 9 1.7 An Overview of Pfizer 10 1.8 Summary 11 Chapter2.0 Literature Review 12 2.1 Introduction 12 2.2 An Overview of Options 12 2.3 Types of Options 14 2.4 Factors Affecting Options 16 2.5 Application of Option Pricing Model 18 2.6 Option Pricing Model in Real World 19 2.7 Option Pricing Model and Historical Data 20 2.8: Summary 21 Section 3.0 Research Methodology 22 3.1 Introduction 22 3.2 Research Philosophy 22 3.3 Research Approach 23 3.4 Data Collection Methods 23 3.5 Data Analysis Methods 24 3.6 Ethical Considerations 24 3.7. Strengths of the Methodology 25 3.8: Limitations of the Methodology 25 Chapter 4.0 Findings and Analysis 26 4.1 Introduction 26 4.2 Value based Management 26 4.3: Economic Value Added 28 4.4: Market Value Added 29 4.5: Option Pricing Models 30 4.6: General Findings 32 4.7: Summary 34 Chapter 5.0 Conclusion and Recommendations 35 5.1 Introduction 35 5.2 Conclusion 35 5.3: Recommendations for Future Research 36 5.4: Recommendations for Pfizer 36 5.5: Reflection 37 5.6 Summary 37 BIBLIOGRAPHY 38 CHAPTER-1.0: INTRODUCTION 1.1: Introduction to the Research Topic Business environments have always been unpredictable and hard to understand and therefore, it becomes important to understand the intricacies of business environments and financial concepts that will help in understanding the growth and development of organsiations. In finance, the time value of assets and o rgansiations is calculated through the analysis of intrinsic and extrinsic values that vary in a great manner (Aswath, 2008). In finance, the concept of â€Å"Option† is defined as a derivative financial instrument specifying a contract between two parties for a future transaction revolving around an asset at a reference price (Aswath, 2008) In today’s time, the concept of option pricing has emerged as a safeguarding tool for a number of organsiations willing to