The Demutualisation of AMP Society: An Example of the Valuation of Collars Comprising Asian Options

Stephen A. Easton and Sean M. Pinder
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Stephen A. Easton: Department of Accounting and Finance, University of Newcastle. Cailaghan. NSW 2308
Sean M. Pinder: Department of Accounting and Finance, University of Newcastle. Cailaghan. NSW 2308

Australian Journal of Management, 2000, vol. 25, issue 3, 283-297

Abstract: A number of Australian mutual organisations have recently been demutualised and restructured as public companies. In the case of AMP Society, a cottar comprising average price, or Asian, options formed part of the financial structuring of the demutualisation process. We value the collar and demonstrate that decisions made by policyholders during the demutualisation process are likely to have been affected by their level of uncertainty with respect to the value of AMP shares. This finding has implications as to the quantity of information provided to policyholders during the demutualisation process.

Keywords: DEMUTUALISATION; ASIAN OPTIONS; COLLARS; AMP; UNCERTAINTY (search for similar items in EconPapers)
Date: 2000
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Persistent link: https://EconPapers.repec.org/RePEc:sae:ausman:v:25:y:2000:i:3:p:283-297

DOI: 10.1177/031289620002500303

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