[accastudf5]

Could you please help me understand where they took the figures for EBIT (1-t): 285, 307, 328 and 348?

Thanks!

[accastudf5]

Thanks! It’s clear now.

[accastudf5]

OK, understood.Thanks!
What about point b) ii) Estimate the maximum interest that could be received with your selected hedge. How should we approach this question? Please help me understand. Many thanks!

[accastudf5]

On part b) they have concluded that the option will be advantageous if the option is not exercised and USD is weaker than a certain spot rate. Then they have calculated Required spot rate for each strike price. How they’ve calculated amounts 266,250 and 268,125 and 270,000? I don’t understand this part. Could you please clarify? Thanks!

[accastudf5]

Thanks for confirmation! I wanted to be 100% sure that this is how it’s done.

[accastudf5]

So do you mean that beta for property section is 1.25 * 50/(50+50)=0.625?

Thanks a lot!

[accastudf5]

I have another question related to this. Why do you ADD Put premium? I thought premium is always paid.

Many thanks!

[accastudf5]

Sorry, but I still cannot understand how I can calculate the beta of property section (0.625). Can you please help me?

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