SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : WEBS MALAYSIA (AMEX:EWM) -- Ignore unavailable to you. Want to Upgrade?


To: Rational who wrote (5)10/15/1998 12:49:00 PM
From: peter michaelson  Read Replies (1) | Respond to of 33
 
I mean simply that if the two funds, EWM and MF, used the same exchange rate - that is the common exchange rate.

Please correct me if I am wrong......

If we translate today's NAV back to ringgit and then use the same exchange rate for both we have ....

MF = NAVxRateUsed/Common Rate(arbitrary) = 2.28x3.8/4.0 = 2.17
MF Price = $3.50
Premium = (3.50-2.17)/2.17=61%

EWM = 2.31x5.07/4 = 2.93
EWM Price = $2.125
Premium = (2.125-2.93)/2.125 = -38%.

Difference = 99%

WOW! Same as Thailand. Is this right?

peter