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Sprigg Lane (B)
Opitz, Casey S. Case F-0804 / Published March 28, 1988 / 10 pages. Collection: Darden School of Business
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Product Overview

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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  • Overview

    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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