Perfect yes then i understand mostly everything i think, once i physically see the option component and do the numbers i can crosscheck my assumptions
Except, my next assumption in your example is that i will get the option so to speak of paying for 7500 units at a 7.5% discount to NAV within 3 years of the recorded date they were issued? Is this correct or are the "additional benefit" options transacted differently?
My theory is that if the magellan global fund performs well into the future once again, which i have confidence it will, at some point there will be an arbitrage opportunity with even a chance of a premium as demand for MGF picks up, which is quite lucrative on large sums of money. In the meantime i get a 7.5% discount on the DRP to NAV which long term on average without brokerage could be below the share price invested in the worlds best businesses by australias leading investing experts I trust. This compounded over decades could be quite powerful.
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)