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Ali

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Active 1 year ago
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  • February 7, 2018 at 3:10 pm #435706
    mysteryAli
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    • Topics: 6
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    I got that Pe will be the exercise price. Which is $15m in Furlion but the Pa which spose to be the PV of the cashflow which is 0. But the model answer took $15m × 0.712= ……..
    So my question is why does he take PV of exercise price rather taking Pa= 0?(NPV)
    (In model answer Pa= $15m ×0712= $10.68)
    Or we can take any of these?

    January 4, 2017 at 9:03 pm #365123
    mysteryAli
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    • Topics: 6
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    Thank you very much sir, the study guide is really helpful.

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