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If the question asked for 3 hav share for 2 strand shares, do we use 3/2 to multiply by the no. Of shares or share price?? But how do we know when should we multiply the no. Of shares or share price?? Because in this question’s share for share exchange, we multiply by 9.24, which is hav’s share price but in sigra co (dec 2012) share for share exchange, we multiply 3/2 by dentro number of shares. I don’t really understand when should we multiply by share price and when should we multiply by share number. Can u explain?
Thanks for the advice !!! Time constraint is definitely a prob but will try my best 🙂
Hi sir,
I would like to clarify the forward and spot rates here. When we are calculating the premium for the options, we convert the premium in USD to euros by spot rate of 1.3585. Is it because we need to pay premium in USD that is why we use 1.3585 instead of 1.3618?
About calculating the underhedge, we convert USD to euros by using forward rate of 1.3623. Is it because we still hv to convert the left over under hedged to euros
I’m a little confused by the buy/sell. Could you please provide some guidance? :/
Thank you.
Thank you sir for explaning 🙂 appreciate a lot!! I would like to ask when doing question 1 where we need to write report of analysis and calculation, do u suggest us to do the calculation and write the explanation at the same time or do the calculations first and writing part next??
Hi,
I would like to confirm whether 2% of asset is consider material because in the question of 2008 june question 3, where it’s about related party transactions. The receivable balance is $25,000, total assets is $12 million, which means it’s material because it represents 2% of total assets, isn’t it? But why did the answer said that it is not material? Don’t really understand 🙁