Dear Pascal,

I would like to thank you for your brilliant book, Value in Time.

In some markets there are some special constraints for price changes for a given day. For example in IRAN stock market there is +-5% price changes limitations with respect to the previous day's volume weighted price average. Consider that today's volume weighted price average for all transactions is 100, then tomorrow the price could oscillate between 95 and 105.

With this boundary conditions for price, if the demand for a company to be high the ask price will be 105 but at this condition there are some times no one to offer his/her stock to the market, i.e there is no supply at that day. We call this BUY QUEUE! The same problem exists on the bad days of the stock which is called SELL QUEUE.

Under these queue conditions, a group of shareholders are in queue to buy or sell their shares. for example consider 100,000 shares are in buy queue. Under this condition how could we calculate your proposed EV as the price can not go higher than +5% but some transaction will be executed?

I mean although the executed transaction volume at the queue does not lead to price change as you mentioned in your book, but this is only because of the boundary conditions imposed on the price and not because of the volume could not increase the price. How should we calculate the EV under such circumstances?

Regards
Ali