KKR Fund had the following trades in Zenith shares in the options market through Khan Brokers. The stock exchange requires that the writer of the options maintain 10 percent of the value of the contract as margin money throughout the life of the contract. On January 1 KKR Fund introduced US$100,000 as capital and converted US$50,000 into AUD at a rate of 1.24.

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Date Product Strike Price Expiry Quantity Rate (AUD) B/S Brokerage (AUD) 21-Jan-X1 20-Feb-X1 Call Call 12-Mar-X1 Call AU$40 15-Mar-X1 12,000 AU$40 15-Mar-X1 13,000 AU$40 15-Mar-X1 15,000 4.00 B $500 5.00 B $600 4.00 S $300 Liquidation Method FIFO Market Rate of Underlying Stock, Zenith (AUD) January 31: 35.00 February 28: 40.00 March 16: 45.00 Market Rate of Zenith Call Option with Strike Price $40, Expiry March 15 January 31: 3.00 February 28: 5.00 FX Rate AUD/US$ January 21: 1.2178 January 31: 1.28964 February 20: 1.26345 February 28: 1.24789 March 12: 1.23645 March 15: 1.27893 Functional Currency US$