Question
If, using the one-period model, you calculate a fair price (present value) of a stock to be $25/share, but the same stock is currently trading
If, using the one-period model, you calculate a fair price (present value) of a stock to be $25/share, but the same stock is currently trading at $29.00/share on Nasdaq what should you do
| Buy the stock as the present value of the stock is lower than the current stock price | |
|
| Sell the stock as the present value is higher than the current stock price |
|
| Sell the stock as the present value is lower than the current stock price |
|
| Buy the stock as the present value of the stock is higher than the current stock price |
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The Oxford Handbook Of Hedge Funds
Authors: Douglas Cumming, Sofia Johan, Geoffrey Wood
1st Edition
0198840950, 978-0198840954
