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At the T. Rowe Price Trading Desk (B) Tuesday, August 21, 1984 12:21 p.m. Greg: (in response to Michael's offer of $23/2 for Avantek and $151/4 for Tandem): "OK on Tandem, but my lowest on Avantek is $24." Michael: "OK." 285-042 At the T. Rowe Price Trading Desk (B) Exhibit 1 Avantek Trade on August 21, 1984, 12:21 p.m.-Market Close Time Price Shares (100s) 12:22 12:23 12:23 12:23 12:50 1.23 1:46 1:48 1:51 2:07 2:10 2:20 2:38 2:39 2:39 2:57 3:00 3:01 3:05 3:08 3:15 3:15 3:16 3:39 3:59 24 34 24 24 1/8 24 14 24 7/8 24 7/8 24 7/8 24 1/8 24 34 24 5/8 24 5/8 24 5/8 24 5/8 24 5/8 24 34 24 7/8 24 5/8 24 7/8 24 34 24 12 24 12 24 34 24 34 24 34 24 12 125 1,830 1,000 100 2 3 1 21 30 1 5 1 10 8 30 1 1 10 5 5 4 300 1 10 2 Exhibit 2 Tandem Trades on August 21, 1984, 12:21 p.m.Market Close Time Price Shares (100s) Time Price Shares (100s) 2:17 2:17 2:21 2:24 2:26 Ao 5 10 1 5 1 2 1 100 1 1 2:27 12:21 12:22 12:22 12:23 12:27 12:29 12:30 12:36 12:43 12:46 12:52 12:59 1:00 1:01 1:02 1:02 1:04 1:05 1:05 1:15 1:24 1:26 1:29 1:29 1:30 1:33 1:33 1:38 1:43 1:47 1:48 1:48 1:49 1:53 1:56 2:01 2:04 2:06 2:06 2:06 2:10 2:13 2:15 2:16 2:17 2:17 15 15 15 1/4 15 1/8 15 1/2 15 15 1/8 15 1/8 15 15 1/8 15 15 1/8 15 1/8 15 1/8 15 1/8 15 1/8 15 1/8 15 1/4 15 1/8 15 1/4 15 1/4 15 1/8 15 1/8 15 1/8 15 15 15 1/8 15 1/8 15 1/8 15 1/8 15 1/8 15 15 1/8 15 15 1/8 15 15 15 1/4 15 1/8 15 1/8 15 15 1/8 15 1/8 15 15 15 2,000 1,350 3,200 7 1 2 1 10 3 10 1 5 5 10 10 20 5 5 5 2 2 5 1 25 19 15 1 2 4 13 2 51 1 60 1 2 9 30 4 4 9 50 2 1 5 5 2:32 2:33 2:33 2:35 2:40 2:43 2:44 2:44 2:44 2:45 2:45 2:53 2:57 2:57 2:58 3:02 3:05 3:06 3:09 3:10 3:11 3:11 3:11 3:11 3:13 3:13 3:14 3:17 3:21 3:22 3:28 3:33 3:38 3:41 3:47 3:50 3:54 3:56 3:56 3:58 15 15 15 15 15 1/8 14 7/8 15 15 15 14 7/8 14 7/8 15 15 15 15 1/8 15 1/8 15 1/8 14 7/8 14 7/8 14 7/8 15 1/8 14 5/8 15 14 7/8 14 7/8 14 7/8 14 7/8 14 7/8 14 7/8 14 7/8 14 7/8 15 14 7/8 15 15 15 14 7/8 14 7/8 15 15 15 14 7/8 15 14 7/8 15 15 16 on ooo ooo oo on CNNNNNN O 0 - 250 Exhibit 3 Performance of Various Stock Indexes on August 21, 1984 Dow Jones Industrials +1.87% S&P 500 +1.75% Wilshire 500 +1.56% Computer Technology Index +2.34% New Horizons Fund +1.23% QUESTION 7 1. How much total direct transaction cost for trading Avantek and Tandem would Greg incur relative to the fair value if he were to accept Michael's terms in CASE A? Note: total cost refers to the cost after considering all shares traded. It is not cost per share. 271,000 580,000 Do not incur cost because Greg actually makes money 309,000 At the T. Rowe Price Trading Desk (B) Tuesday, August 21, 1984 12:21 p.m. Greg: (in response to Michael's offer of $23/2 for Avantek and $151/4 for Tandem): "OK on Tandem, but my lowest on Avantek is $24." Michael: "OK." 285-042 At the T. Rowe Price Trading Desk (B) Exhibit 1 Avantek Trade on August 21, 1984, 12:21 p.m.-Market Close Time Price Shares (100s) 12:22 12:23 12:23 12:23 12:50 1.23 1:46 1:48 1:51 2:07 2:10 2:20 2:38 2:39 2:39 2:57 3:00 3:01 3:05 3:08 3:15 3:15 3:16 3:39 3:59 24 34 24 24 1/8 24 14 24 7/8 24 7/8 24 7/8 24 1/8 24 34 24 5/8 24 5/8 24 5/8 24 5/8 24 5/8 24 34 24 7/8 24 5/8 24 7/8 24 34 24 12 24 12 24 34 24 34 24 34 24 12 125 1,830 1,000 100 2 3 1 21 30 1 5 1 10 8 30 1 1 10 5 5 4 300 1 10 2 Exhibit 2 Tandem Trades on August 21, 1984, 12:21 p.m.Market Close Time Price Shares (100s) Time Price Shares (100s) 2:17 2:17 2:21 2:24 2:26 Ao 5 10 1 5 1 2 1 100 1 1 2:27 12:21 12:22 12:22 12:23 12:27 12:29 12:30 12:36 12:43 12:46 12:52 12:59 1:00 1:01 1:02 1:02 1:04 1:05 1:05 1:15 1:24 1:26 1:29 1:29 1:30 1:33 1:33 1:38 1:43 1:47 1:48 1:48 1:49 1:53 1:56 2:01 2:04 2:06 2:06 2:06 2:10 2:13 2:15 2:16 2:17 2:17 15 15 15 1/4 15 1/8 15 1/2 15 15 1/8 15 1/8 15 15 1/8 15 15 1/8 15 1/8 15 1/8 15 1/8 15 1/8 15 1/8 15 1/4 15 1/8 15 1/4 15 1/4 15 1/8 15 1/8 15 1/8 15 15 15 1/8 15 1/8 15 1/8 15 1/8 15 1/8 15 15 1/8 15 15 1/8 15 15 15 1/4 15 1/8 15 1/8 15 15 1/8 15 1/8 15 15 15 2,000 1,350 3,200 7 1 2 1 10 3 10 1 5 5 10 10 20 5 5 5 2 2 5 1 25 19 15 1 2 4 13 2 51 1 60 1 2 9 30 4 4 9 50 2 1 5 5 2:32 2:33 2:33 2:35 2:40 2:43 2:44 2:44 2:44 2:45 2:45 2:53 2:57 2:57 2:58 3:02 3:05 3:06 3:09 3:10 3:11 3:11 3:11 3:11 3:13 3:13 3:14 3:17 3:21 3:22 3:28 3:33 3:38 3:41 3:47 3:50 3:54 3:56 3:56 3:58 15 15 15 15 15 1/8 14 7/8 15 15 15 14 7/8 14 7/8 15 15 15 15 1/8 15 1/8 15 1/8 14 7/8 14 7/8 14 7/8 15 1/8 14 5/8 15 14 7/8 14 7/8 14 7/8 14 7/8 14 7/8 14 7/8 14 7/8 14 7/8 15 14 7/8 15 15 15 14 7/8 14 7/8 15 15 15 14 7/8 15 14 7/8 15 15 16 on ooo ooo oo on CNNNNNN O 0 - 250 Exhibit 3 Performance of Various Stock Indexes on August 21, 1984 Dow Jones Industrials +1.87% S&P 500 +1.75% Wilshire 500 +1.56% Computer Technology Index +2.34% New Horizons Fund +1.23% QUESTION 7 1. How much total direct transaction cost for trading Avantek and Tandem would Greg incur relative to the fair value if he were to accept Michael's terms in CASE A? Note: total cost refers to the cost after considering all shares traded. It is not cost per share. 271,000 580,000 Do not incur cost because Greg actually makes money 309,000