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Real options: Caribou Coffee, Heineken, Tom Tom

1. List and discuss in detail Real Options available to Caribou Coffee
(Real Options include: Investment Timing, Abandonment, Flexibility, Growth, etc.)

2. List and discuss in detail Real Options available to Heineken
(Real Options include: Investment Timing, Abandonment, Flexibility, Growth, etc.)

3. List and discuss in detail Real Options available to Tom Tom
(Real Options include: Investment Timing, Abandonment, Flexibility, Growth, etc.)

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1. List and discuss in detail Real Options available to Caribou Coffee

-- CBOU has 8 call options and 6 put options. Their put options remain continually strong, and their call options also show strength. The only decline is with one call option, which is a decline of 0.10 on SYM 1250. Half of their call options are in the money options, and four of their strike options are in the money options. They continue to remain a healthy investment, and investment timing coincides with current buys. There are no calls to sell or abandon due to the strength of their numbers. CBOU's overall growth is showing a decline in the current quarter, but abandonment is negative because of their analyst calls, which are expected to hold constant with in-line industry growth in the next quarter. The industry growth is estimated at 48.80%, while CBOU is expected to see 35.70%. Their real options would be slightly flexible because of their ...

Solution Summary

This solution lists and discusses in detail the Real Options available to Caribou Coffee, Heineken, and Tom Tom.

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