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Sir,
You created a 3rd example regarding
What % of shares must be taken for the wealth to remain unchanged at ($9600)If I try to formulaise what you explained it seems like this: (Constant wealth/Terp)
Can you please confirm whether it is right..?Also,
When Mrs X took 200 shares still her wealth was unchanged at $9600
And also when she took 80 shares it was $9600So can there be different combinations causing same answer…
The total wealth (value of shares plus or minus the change in the cash balance) will in theory remain unchanged whatever Mrs X does.
However the third example was asking what % of the rights to take up (and therefore what % to sell) for there to be no change in the cash balance.
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