Sundem is asking faculty to teach their specialties in the context of the technology sector. But in the long run, these core skills will probably serve them much better than any functional skills they learn. The intention is not to prep students only for software companies or biotech firms, Sundem explains, it's to prepare students to work anywhere. As the data is beginning to settle from the opening volleys of the Information Revolution, it has become apparent that the New Economy is beset with new financial issues. Companies hemorrhaging money nevertheless enjoy enormous market valuations.
Options stand in for salary.
The opportunity to amend and modernize the methodology is as tantalizing as it is necessary. As technology companies attempt to evaluate the complex projects they undertake and the compensation policies they adopt, it has become clear that tools that are currently used to value financial securities can be applied. Avraham Kamara , professor of finance, is addressing these issues. In his second-year MBA financial futures and options course he uses option pricing theory to understand and calculate the value of real options, defined as options embedded in the investment decisions of firms. Yet, in most cases firms can choose on the timing of their investment, as well as expand, contract or even abandon the project upon getting more information about the anticipated cash flows from the investment.