I am leaving Nottingham in 6 weeks so i feel like blogging to share my last months of Erasmus life.
The Corporate Finance lecturer said a joke yesterday. It was funny during the lecture but i am sure it won’t be funny there. He presented the question like a question which could be on the exam.
“You are long call options on Megabank and you have delta-hedged your position. News breaks that the CEO of Megabank has fallen in the Thames and drowned. The stock price has also fallen. Are you going to borrow and buy stock or sell stock and lend ?”
He took randomly a guy in the class room. “So what is the answer ???” The guy was really stressed and pick up a answer randomly as well.
The lecturer answered “No … send your CV, the CEO is dead it could be a good opportunity for you !!!!!”