[James]

@amcterna

I came up with hedging as well. I must admit it was very much plucking ideas out of thin air by that point, seemed a very strange question all in all.

[James]

I’m a little way off starting the second one. Good luck with it!

[James]

Hello,

I presume you are attempting the BPP course exam 1? I came to the same point and came to the exact same conclusion as you.

Calculate the sister’s estate rate (54/360 = 15%) and apply that to the gift to work out the net value Jane actually received and then apply the formula to calculate the QS – £5321.

Could be wrong, but I assumed the same 🙂

[James]

I came to same conclusion as Benjamin for Qu 4 – Lidan have the choice between redeeming the shares or not – but their options were issuing shares at $10 or cash at $1 – no brainer therefore ‘probable’ future outflow..

[Author]

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