The Pricing of the SATS Bull and Bear Stocks

Nahum Biger

doi:10.1080/03796205.1988.12128952

The Pricing of the SATS Bull and Bear Stocks

Nahum Biger

School Of Business Administration

Research output: Contribution to journal › Article › peer-review

Abstract

Two index-linked stocks were issued by the South African Transport Services in November 1986. They offer the investor fixed coupon payments, but their redemption values will be determined by the level of the JSE Index on April, 1990. The two stocks thus have an unknown maturity value. The paper analyses the equilibrium prices of the stocks, using option pricing equations. It derives pricing equations for both stocks, and then demonstrates the actual application of the model.

Original language	English
Pages (from-to)	1-9
Journal	Journal of Social, Political, and Economic Studies
Volume	12
Issue number	3
DOIs	https://doi.org/10.1080/03796205.1988.12128952
State	Published - 1988

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10.1080/03796205.1988.12128952

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title = "The Pricing of the SATS Bull and Bear Stocks",

abstract = "Two index-linked stocks were issued by the South African Transport Services in November 1986. They offer the investor fixed coupon payments, but their redemption values will be determined by the level of the JSE Index on April, 1990. The two stocks thus have an unknown maturity value. The paper analyses the equilibrium prices of the stocks, using option pricing equations. It derives pricing equations for both stocks, and then demonstrates the actual application of the model.",

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The Pricing of the SATS Bull and Bear Stocks

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