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Hi Denny,

I think it might be best to explain with an example. Here is one from 2019 wherein share holders of MCK could select to take parts in an exchange where for every 100 USD of MCK shares could be exchanged for 107 USD of CHNG shares. The key about odd lot provision is that if you select to exhange '99' of less number of MCK shares then your request to take part in the exchange is guaranteed.

Here is some numbers to illustrate how one could have made a profit in this particular example (I hope that helps. I'm still learning so there may be some mistakes):

MCK/CHNG Odd Lot Exchange
CHNG Price $16,00
MCK Price $167,21
MCK Shares Purchased 99
Value of DHR Shares $16 553,8
Adjustment Factor (7% discount) 0,93
Adjusted CHNG share price $14,8800
Shares of MCK 1112,49
Exchange Ratio 11,2372
Implied Exchange Ratio 11,23723118
Maximum Exchange Ratio 11,4086
CHNG Shares Received 1112,49
Investment $16 554
Expected Gross Proceeds $17 800
Commission $0,00
Exchange Fee $0,00
Expected Net Proceeds $1 246
Expected Net Return 7,5%
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