SunSuper Managed Fund (SMF) has the following combination of assets in their portfolio: $50 million...
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SunSuper Managed Fund (SMF) has the following combination of assets in their portfolio: $50 million in fixed-income securities and $25 million in stocks at current market values. In the event of a liquidity problem, SMF can sell the assets at 95 per cent of market value if they are disposed of in 2 days. SMF will receive 98 per cent if the assets are disposed of in 4 days. Two share/unit holders, Amanda Rodriguez and Benjamin Lee, own 7 per cent and 9 per cent of equity (share/units), respectively. Due to COVID-19 related market uncertainty, Amanda and Benjamin sell their share/units back to SMF. What will Benjamin receive if SMF must sell all the assets in two days? In four days?
A.
$4.14 million in two days and $4.26 in four days
B.
$6.41 million in two days and $6.62 in four days
C.
$2.12 million in two days and $2.32 in four days
D.
$2.32 million in two days and $2.89 in four days
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