We can value to CVR security using the BSM. (Exhibit 11) Wherein, Strike Price = K = 175 for Long Put and 150 for short put Underlying price of merged entity = S = 172.96 Time to maturity = 1.5 years Risk Free Interest Rate = r = 0.97% (Using 2-year treasury rate) Volatility V = 25% Dividend Yield = q = 0% Using the spot price after merger i.e. $ 172.96, we get value of CVR security as $ 11.34. (20.77 long Put @ 175 and 9.43 for short put @ 150) (refer the graphs and tables attached) The "sweetened" offer increases the value of the Premium paid. As the CVR is listed on stock exchange, it can be immediately monetized. I would accept the offer, as it adds to the value of the overall premium we are receiving and protects us against any possible downfall to the extend of $25 per share.