Triple A Company is a mid-sized California company that specializes in creating high-fashion clothing. The company executives want to understand financial options and its application in corporate finance because many projects of the company allow managers to make strategic or tactical changes in plans depending on changes in market conditions. Management believes that understanding financial options can help them to manage the value inherent in real options. Also, the company would like to manage risk using financial options. Management wants to make optimal capital structure decisions by issuing convertible bonds in the market and thinks that financial options can guide them to make right decisions. A supervisor at the accounts department of the company has stated that financial options would help the company to manage the employee stock option plans. However, no one at Triple A is familiar with the basics of financial options. You were asked to prepare a brief presentation that the firms executives could use to gain a cursory understanding of financial options.

Question: Describe four ways that option pricing can be used to help Triple A in its corporate financial management.