[lehalinh610]

It’s now clear for me! Thank you a lot!

[lehalinh610]

Dear Sir,
Thanks for your quick response!
My concern is that: premium for the call option of 0.280% is applied for interest 4.5% not 4.75%.
While premium for call option @ 4.75% (strike price 95.25) is 0.445%.

[lehalinh610]

Dear sir,
Can you please explain to me the question
b. (ii) Estimate the maximum interest that could be received with your selected hedge.
The answer in BPP is: “The maximum interest rate that is possible under the selected hedge is 4.75%, equivalent to the put option exercise price of 95250. Troder will not have exercised its option, but taken advantage of the rate being above 4.5%.
Net return = 4.75 – 0.25 – 0.280 + 0.085 = 4.305%”

[lehalinh610]

– About RE of SOFP of 20X8: I’ve looked back the answer, they already included in RE:)). Thank you so much!
– But with EPS, I still confused: why do we include interest saved of coming years… in comparative earning, because impact in earning –> impact in RE. But in RE we exclude these.

[lehalinh610]

Dear Sir, I think share buy-back happen at the end or 20X8 –> impact on RE of 20X8 also. Why do we exclude of comparative SOFP of 20X8?
– And also, in calculating comparative EPS of 20X8, why do we take into account interest saved…that happened in future?
Thanks in advance!

[lehalinh610]

Tks a lot…

[lehalinh610]

i think u can apply this
F= S(c/b)x(1+ic)/(1+ib)
For example BPP page 331
F=S($/Dinar)x(1+i$)/(1+iDinar)= 5.467X1.14/1.09= 5.7178 ($/D)
OR
F=S(Dinar/$)x (1+iDinar)/(1+i$)=1/5.467×1.09/1.14=0.174893 (D/$) <=> 5.7178 $/Dinar

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