1. a)lf you had bought an at-the-money OKLI Call at 1680 for a premium of 27.5, and the settlement price for FKLI is 1600 at the end of the contract month, what is your gain or loss (in index point)? Draw the call payoff chart for your strategy. Label the axes, and the cutoff breakeven points well. b) If you had bought an at-the-money OKLI Put at 1680 for a premium of 27.5, and the settlement price for FKLI is 1600 at the end of the contract month, what is your gain or loss (in index point)? Draw the call payoff chart for your strategy. Label the axes, and the cutoff breakeven points well. 2. a)lf you had bought 12 OKLI 1680 Call at premium of 27.5 index points, to replicate a basket of stocks worth RM1 million and placed the remainder of the RM1 million in bonds that give interest of 4.5% percent per annum, what would your loss or gain in RM) be, when KLCI is at 1600 at the end of the month? (Assume you had held the bonds for 1 month, that you continue to hold the bond, and that there is no redemption penalty Transaction cost for stocks is 0.755% of the total transaction value and for option is RM30 per one way) b)If you had bought 12 OKLI 1680 Call at premium of 27.5 index points, to replicate a basket of stocks worth RM1 million and placed the remainder of the RM1 million in bonds that give interest of 4.5% percent per annum, what would your loss or gain (in RM) be, when KLCI is at 1800 at the end of the month? (Assume you had held the bonds for 1 month, that you continue to hold the bond, and that there is no redemption penalty. Transaction cost for stocks is 0.755% of the total transaction value and for option is RM30 per one way) 3. a) What is the maximum potential loss of a long 100, $10.00 Stock A Put purchased for 18 cents each? b) For a short position in a $10.00 Stock A Put sold for 18 cents, to achieve the maximum profit at expiration, what must be the price of the underlying stock? 4. If Stock A is trading at $10.18 and the $10.00 Put is trading at $0.18, how much time premium is there in this put option? 5. Describe what is Put-Call Parity relationship is. Chart a possible Put Call Parity to show the overall resulting payoff position in a profit/loss scenario graph