Cornerstone Research staff and experts have consulted and provided expert testimony in a large number of cases involving complex derivatives and other contingent claims. Our staff combines knowledge of option-pricing theory and application with expertise in implementing state-of-the-art valuation methods to effectively deliver analysis in a broad range of derivatives litigation. Our experience with analytical issues in derivatives litigation includes:
- Building valuation and damages models for a variety of complex derivative contracts, including collateralized debt obligations (CDO), employee stock options, warrants, and many types of exotic options.
- Developing valuation models based on contingent claims theory for convertible equity, high-yield bonds, and warrants.
- Developing options-based valuation models for firms that have a large number of “real” options for which standard discounted cash-flow approaches are not appropriate.
- Evaluating the structure and performance of complex hedging strategies used by a variety of firms, including hedge funds and other financial institutions.