Timofeev D.V.National Research University - Higher School of Economics in Perm; Ltd Parma-Management, Perm', Russian Federation tidivi@yandex.ru
Multipliers of the capital of the Russian banks at the turn of 2007-2008 were extremely high, suggesting that this is the exchange bubble. The paper reconstructs the possible rational reason of high cost connected with existence of a real option. The author uses two approaches: analysis of trees of decisions and binomial model. The analysis shows that from this option only some investors could receive benefit. Therefore, the hypothesis of a local bubble of bank actions remains.
Keywords: real option, analysis, decision tree, flexibility valuation, DCF, bank, bubble, rationality
References:
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