Professor Elam

In the 091 section of the MBA class Thursday night I discussed how the investment banks had gotten into trouble using commercial paper (short term) to finance long term investments, sub prime mortgages.  And I specifically mentioned Lehman which has been previously discussed on the blog. Well sure enough,
Lehman dropped 14% Friday and recovered to be down 8%. Read the hyperlink, what are puts and why are people buying them?  A put is an option that grows in value when a stock declines. I suggest you take a look at the chart of LEH stock, what does that tell you?  Now look at BSC, are there similarities? We will continue our discussion as it look like the market will be most interesting during June while we are having class.