Exercise 1. (1) Since Class A coin gets no additional coupon payment during the jump, we have the following NAV table Before the jump After the jump Class A 1+ RVt 1 + RVt RO ' 1 0 RVt Class B Hd 2 ETH Price (} (Vi + Vg ) + Po) ? (1+ Rv+ + Ha) Po 3 1+ Rv, + Buy 1. 2 RVt Po (2) From the above table, the required return of ETH is at most 1+ Rv+ + Boy" 10 RVt . Po. 1 (1 + RV + + Hd) - Po 1+ Rv, + Box " 10 RVt . 1 1+ RV+ + Hd 1 RV+ + 1 = 21+ RV+ + Hd