Describing valuation issues

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You believe that the market has changed so much that valuation of the underlying asset cannot be based on past performance. The ability to price to market has been disqualified. The market is not normal. You propose a new, different method. Your model will lead to a higher valuation of the derivative investment. Your supervisor has told you, in no uncertain manner, that to disobey him will lead to future probation.

- Do you believe that you should listen to your supervisor? Why, or why not?

- What rules and regulations would guide the actions that you would take?

- What actions would you take, and why?

Reference no: EM1363408

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