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Non-Tech : Bill Wexler's Trading Cabana -- Ignore unavailable to you. Want to Upgrade?


To: Kevin Podsiadlik who wrote (5350)4/21/2009 2:05:44 PM
From: RockyBalboa  Read Replies (1) | Respond to of 6370
 
ggg.

In earnest I try to figure out which of the prices was (or is wrong)

set up an equation and plug in the knowm prices, 100 for FAZ then, 10 now and 64 for SKF. Any risk adjusted (3/2) quantity yield a price which makes SKF at least equal to FAZ which should (compounding is a bigger factor in FAZ than in SKF). Voila!