Assume that the market price of SMH was $1 higher than the NAV that you actually observed.
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Question:
Assume that the market price of SMH was $1 higher than the NAV that you actually observed. If you were the manager of a large hedge fund, would you see this as a profitable trading opportunity? What would you expect as a rate of return on that trade? What would you do if the price of SMH was $1 lower?
Related Book For
Intermediate Accounting
ISBN: 978-1118742976
16th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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