284 154

3 5
0.191 0.465
155 21
29.605 9.765
15.70681 10.75269
465 105 136.5 0.220739 43.90644 2.090783
0.779261 155 198.9064

Combined Earning (Since 39.37

Valuation (Since P/E rat 618.377

Nos of shares after TO 155

Issue- New 42
197
Post Acquisition Share P 3.138969

Value Offered to Salvet 131.8367

Value of Minprice 486.5403

Gain 26.83671
Gain 21.54025

2. ) Max value can be of 153.377

0.248031 51.12565 21 2.434555
0.751969 155 206.1257

54.244 71.61
162.732 358.05
271.22
108.488

143.22
429.66 71.61
592.392
 284 154
3 5
EPS 0.191 0.465
Nos of share 155 21
Earnings 29.605 9.765
P/E Ratio 15.70681 10.75269
Value of Co 465 105

Combined Earnings 39.37

Nos of shares after TO 155
Issue- New 42
197
New EPS 0.199848 0.399695 6
P/E Ratio 15.01143 12.50953 12.90323
591

Value Offered to Salvet 126

Value of Minprice 465

Gain 21
Gain 0
Receivable
UK US French Exchange RReceivablePayable Net Settlement
UK 2 1 1 3 4.5 -1.5
US 1.5 0.5 1 2 6.4 -4.4
French 3 4.4 1 7.4 1.5 5.9
Payable 4.5 6.4 1.5
1 1.2 1.1
4.5 7.68 1.65
444 CO 1000 SHAR 1000 444 444000
SD 0.25 430
RF 4.17%
t 0.333333 0.57735
ANS:

d1 0.39 Call
0.07 1.032558 0.032039 0.14 0.22
0.06 0.024317 0.14 0.17
0.39

N(-d1) i.e. delta 0.348002 Put

Calculation of Hedge r 1000 2873.545

£ 70000
SR 1.361
95270
$ 5% 0.025 1.025 97651.75 71174.74
£ 3% 0.015 1.015 71050

96040 93697.56 69047.58 70428.53 96627.94

70000 68965.52 4%
 Buy Sell Borrow Sell Invest
100¥ 24.624 24.893 540000 ¥ ¥ ¥

¥ 0.24624 0.24893
6m Fwd 0.2512 0.25137

Interest ¥ .8%/1%
Interest Rs 10%/11%

Fwd Cover 540000

135,648

Money Market Cover

Borrow 540000¥ 1% 1.005
540000 537313.4
Sell 132,308

Invest 138,923.46
Q8
11Mn Payable
Mar Jun
1.9615 1.9556 1.9502
11,000,000 45 5,607,953.10

2m SR 1.99 5,527,638.19 5,624,872.16 -16,919.06

Future 1.988 5,533,199.20 45.00 80,314.91

0.0324 182,246 182,245.86

Q9

Receivable $ 5,100,000

31st Dec SR $/£ 1.9615 2,600,050.98

Mar Jun
Future Rate $/£ 1.9556 1.9502
Contract Size 125000

After 4 months
SR $/£ 2
Future $/£ 1.9962

Step-1 Afrraid of $ deBuy GBP

Step-II Immediately Expiry after the due date is Jun

Step-III Nos of contrac 2,607,895.28 2,615,116.40

20.86 20.92
21 21
Step-IV 2625000

Apr End
SR $/£ 2 2,550,000 Inflow

Future Rate $/£ Apr 1.9962

Jun 1.9502
Gain 0.046
120,750.00
60,375.00 Inflow

Total Inflow of GBP 2,610,375.00

Effective Rate 1.9537
Jun 1.9502 Buy 5100000 2,615,116
Dec 1.9615
-0.0113 20.92
6
-0.001883
2
-0.003767

2
Future Rat 1.996233 Sell
-0.046033
-5754.167

SR 5100000 2,550,000.00

Gain in Fut 120837.5 60,418.75

2,610,418.75
1.9537
 Jan Feb Mar Apr May
JUN 1.9502 1.9615 -0.0113 -0.001883 -0.001883 -0.003767 -0.00565 -0.007533 -0.009417
4m SR 2 1 2 3 4 5
-0.0498
-0.0083 1.9834
Jun
-0.0113
6