Suppose that Owl invests in Newco across several venture rounds. After one of these rounds of investments,

Question:

Suppose that Owl invests in Newco across several venture rounds. After one of these rounds of investments, Owl draws an exit diagram as shown in Exhibit 13-12.

(a) What is the portfolio of options corresponding to this exhibit?

(b) Suppose the founders of Newco own one-half of everything not owned by Owl. What is the portfolio of options corresponding to the founder'sownership?

Suppose that Owl invests in Newco across several venture rounds.

Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...