1. In December 2017, Xero Limited (Xero) made a surprising announcement that it will delist its shares from the New Zealand Stock Exchange (NZX) at the end of January 2018. On February 02, 2018, Xero was delisted from the NZX to trade solely on the Australian Stock Exchange (ASX). Being one of the star performer in NZX, the announcement is a bitter pill to NZX and a very disappointing if not disturbing development in capital market in New Zealand.
What is the impact of Xero’s delisting on:
A. Chief Executive Officer of Xero, Rod Drury who, owns 40% equity shareholding in Xero at the time of announcement;
B. Milford Asset Management who owns $10 million of Xero shares in a $293m passive fund that tracks the NZX50 at the time of announcement;
C. Minority shareholders who owns less than 5% equity shareholding in Xero at the time of announcement; and
D. The NZX itself and the capital market in New Zealand in general
2. If the spot rate is JPY129.87/USD and the 6 month forward rate is JPY128.53/USD, then the 6-month yen is selling at a forward ________ of approximately ________ per annum.
a. premium; 2.09%
b. premium; 2.06%
c. discount; 2.06%
d. discount; 2.09%