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Sprigg Lane (B)

Opitz, Casey S.

Case

Sprigg Lane (B)

Opitz, Casey S.

F-0804 | Published March 28, 1988 | 10 pages Case

Collection: Darden School of Business

Product Details

This case is meant to follow "Sprigg Lane (A)" (QA-0372), which introduces Monte Carlo simulation as a valuation technique. The B case introduces the use of Black-Scholes to treat a capital-budgeting decision as an option. In this case, the decision is whether or not to drill a gas well.

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