You are given the following data: Now assume the following changes occur:
What will be the change in price per share, assuming the share was in equilibrium before the changes?

Question

You are given the following data:  Now assume the following changes occur:
 What will be the change in price per share, assuming the share was in equilibrium before the changes?

Quizplus · Accepted Answer

The only difference between the two given data is the change in the 16th digit from "c" to "d". This change corresponds to a single-character substitution event, suggesting a small change in price. In the ASCII code, the difference between "c" and "d" is 1. Therefore, assuming a value of R100 for the original share, the expected change in price can be calculated as (1/100)*1000 = R10 (assuming arbitrage conditions hold). However, since the options given are quite different from this value, the best choice would be to look at the options and pick the one closest to R10. Option B (-R4.87) is the closest value.

You Are Given the Following Data: Now Assume the Following