... Reproduces an exclusive extract from Chapter 22 of the new edition of Copeland, Koller and Murrin’s definitive work Valuation: Measuring and Managing the Value of Companies. Covers the practical techniques to use in the difficult issue of valuing insurance companies, using Trans America as a case...

...Thomas Hewett; Roman Igolnikov In this paper we attempt to address, in a non‐technical way, the basic assumptions underlying option pricing theory and point out some of the inherent weaknesses they imply in the reliability of the resulting valuations. We present several concrete examples...