Put Options as Purchases of Liquidity

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American Society of Appraisers Business Valuation Review™
Summer 2005 Volume 24, Issue 2 pp. 48-51
John A. Hatch, PhD


In this article, I explore the logic behind using put options and similar techniques to estimate discounts for lack of marketability. While such efforts are instructive in understanding why some investors would require such discounts, I argue that these efforts cannot inform practitioners about either minimum or maximum discounts that are appropriate in any given context.
Put Options as Purchases of Liquidity
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