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Please solve. Very Urgent. 3. Roola Electronics is planning to raise 500 crore taka from the public. As an investment banker, briefly explain the IPO
Please solve. Very Urgent.
3. Roola Electronics is planning to raise 500 crore taka from the public. As an investment banker, briefly explain the IPO process for this company by using a hypothetical scenario. You need to use fictitious numbers for authorized and paid up capital thus your commission and fees (7% commission). The company IPO is expected to be oversubscribed and you need a strategy for that. Also how will you handle retail investor discount? 4. You are a trader and you are looking at the stock price of Target that has prevailed today for $50. On the same day, two different option sellers are offering call and put options on Target Stock with a strike price of $48 that will expire after 3 months. The call offer is $3 and the Put offer is $2. On the same day, the T-Bill rate is 5%. Suppose you find an arbitrage opportunity and you are locked in. On the expiration day, The stock price is $40. Calculate the profit, if any. You must show detailed work for full credit. 3. Roola Electronics is planning to raise 500 crore taka from the public. As an investment banker, briefly explain the IPO process for this company by using a hypothetical scenario. You need to use fictitious numbers for authorized and paid up capital thus your commission and fees (7% commission). The company IPO is expected to be oversubscribed and you need a strategy for that. Also how will you handle retail investor discount? 4. You are a trader and you are looking at the stock price of Target that has prevailed today for $50. On the same day, two different option sellers are offering call and put options on Target Stock with a strike price of $48 that will expire after 3 months. The call offer is $3 and the Put offer is $2. On the same day, the T-Bill rate is 5%. Suppose you find an arbitrage opportunity and you are locked in. On the expiration day, The stock price is $40. Calculate the profit, if any. You must show detailed work for full creditStep by Step Solution
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