ARU 3.23% 16.0¢ arafura rare earths ltd

options

  1. 7,087 Posts.
    lightbulb Created with Sketch. 74
    Now lets get down to the serious stuff....

    Can someone please check the below numbers... I am happy to be wrong now before i go and buy that nice new V10 Touareg..

    Effectively the strike price for ARUO is now 13c..
    As such they should straight away trade at $0.725-$0.13= $0.595c.. well we are near enough...

    All the paperwork says that Nupower will list at .32c
    Based on the formulae, conversion of (3 x ARUO) + (1 x NUPO) = 60c
    Hence (3x13)+ NUPO = 60c

    So strike price on Nupower Option should be 21c, giving a theoretical listing price of .32 -.21= .11

    For ease of the exercise, lets say market reckons Nupower is worth $42,127,937.28
    SP would be .96c (nice 300% rise)

    Option in theory would be .96 - .21 = 75c (Nicer 682% profit...)..

    Now of course, that would be if you had purchased some.... coz there ain't too many available...
 
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