If you buy at 0.185
Margin of safety is 0.185*10 +7.04 = 8.89
Mother today closing 8.96
Assume 8.95 - 7.04 / 10 = 0.192 maybank JA should worth
Maybank JA details:
| Company Name | |
| Stock Code / Short Name | 1155JA / MAYBANK-JA |
| Date & Time Announce | 10/06/2011 5:12:00 PM |
| Subject | Expiry of Securities |
| Content | ||||||||||||||||||
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3. What is a Mandatory Call Event?
If the price of underlying instrument reaches the Call Price/Call Level at any time prior to the expiry date, the issuer will call the CBBC and trading of the CBBC will be suspended. This event is referred to as a Mandatory Call Event ("MCE"). The CBBC will expiry early and will be delisted on the 4th market day after the MCE.
4. What is the cash settlement amount upon a Mandatory Call Event ("MCE")?
If the Call Price/Call Level is equal to the exercise price, the investors will not receive any cash amount. However if the Call Price/Call Level is different from the exercise price, the investors will receive a cash settlement amount calculated as follows:
» Callable Bull Certificates
Cash Settlement Amount = Number of Callable Bull Certificates x (Lowest Traded Price - Exercise Price) x 1
Exercise Ratio
» Callable Bear Certificates
Cash Settlement Amount = Number of Callable Bear Certificates x (Exercise Price - Highest Traded Price) x 1
Exercise Ratio
where the Highest Traded Price refers to the highest traded price/level of the underlying instrument from the MCE to the end of the next main trading phase
Example
Number of callable bull certificates : 10,000
Call Price : RM 1.50
Exercise Ratio : 2 CBBC per 1 share
Exercise Price : RM 1.00
Expiry Date : 30 December 2010
Scenario 1
A MCE occurs at 9:30 am and the lowest traded price from the MCE to the end of the next main trading phase is RM1.20. Are investors entitled to receive a cash settlement amount upon the MCE?
No Trading Phase Time Traded Price (RM)
1. Opening 9:00 am 2.00
2. Continuous Trading 9:30 am 1.40
10:00 am 1.70
10:30 am 1.50
11:30 am 1.60
12:30 am 1.30
LUNCH
3. *Opening 2:30 pm 0.90
4. Continuous Trading 3:00 pm 1.20
3:30 pm 1.35
4:00 pm 1.40
5. *Closing 4:50 pm 0.90
*Prices in these phases will not be used for the calculation of cash settlement amount upon a MCE
Yes. The MCE occurs at 9.30 am and the lowest traded price is higher than the exercise price of RM1.00. The cash settlement amount is RM1,000.
Cash Settlement Amount = Number of Callable Bull Certificates x (Lowest Traded Price - Exercise Price) x 1
Exercise Ratio
= 10,000 x (RM 1.20 - RM 1.00) x 1/2
= RM 1,000
Scenario 2
MCE occurs at 9:30 am and the lowest traded price from the MCE to the end of the next main trading phase is RM0.90. Are investors entitled to receive a cash settlement amount upon the MCE?
No Trading Phase Time Traded Price (RM)
1. Opening 9:00 am 2.00
2. Continuous Trading 9:30 am 1.40
10:00 am 1.70
10:30 am 1.50
11:30 am 1.60
12:30 am 1.30
LUNCH
3. *Opening 2:30 pm 1.10
4. Continuous Trading 3:00 pm 0.90
3:30 pm 1.20
4:00 pm 1.30
5. *Closing 4:50 pm 0.90
*Prices in these phases will not be used for the calculation of cash settlement amount upon a MCE
No. Investors will only receive cash amount if the lowest traded price from the MCE to the end of the next main trading phase is above the exercise price.
5. What is the cash settlement amount at expiry?
The cash settlement amount at expiry will be calculated as follows:
» Callable Bull Certificates
Cash Settlement Amount = Number of Callable Bull Certificates x (Closing Price - Exercise Price) x 1
Exercise Ratio
» Callable Bear Certificates
Cash Settlement Amount = Number of Callable Bear Certificates x (Exercise Price - Closing Price) x 1
Exercise Ratio
Where the Closing Price is either:
(a) The closing price of the underlying instrument on one (1) market day prior to the expiry date;
(b) Average closing price of 5 market days prior to the expiry date; or
(c) Arithmetic mean of 1-day volume weighted average price for 5 market days prior to the expiry date.