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Technology Stocks : UNPH _ Uniphase

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To: Craig Wilson who wrote (1158)3/17/1999 12:07:00 PM
From: Robert Sheldon  Read Replies (1) of 1261
 
Calculate the exchange ratio by doing this:

JDS shares $CDN / $CDN for $US Exchange Rate = 73.30/1.5275 = 47.99
you can get the exchange rate at xe.net
you can get the JDS price at tse.com

Divide the 47.99 by the stated exchange rate of 0.50855 = US$94.36
This is the equivalent rate that UNPH shares should be trading at assuming complete parity. However at the time of this post we find UNPH trading at US$98.25. This represents an approximate 4% discount of JDS to UNPH. In other words, if a fellow was to believe that the merger was certain, it would be better to purchase the JDS shares.
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