[pmai]

anishalalani wrote:I got the same effective rates – now I am worrying whether I read the question wrong and it said use collars rather than options? Can you remember that it definitely said use option not collar?

There were 2 sets of Q, one is option and the other collar.

[pmai]

How did you guys calculate share value of target co.? Is the additional value 1.25*16???

[pmai]

I had collar. Could not remember exactly but futures>FRA>collar. Futures and FRA is around 4.1-4.2 and collar around 3.7% Did you get the same?

[pmai]

For Q2 which hedging did you find give the highest rate?

[pmai]

Thank you Sir

[pmai]

It makes much more sense. Many thanks Sir

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