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1. Complete the following sentences: a. For ( ) , when the spot price is ( ) the strike price, then the profit/loss will be

1. Complete the following sentences:

a. For ( ) , when the spot price is ( ) the strike price, then the profit/loss will be equal to the spot price minus the ( )minus the premium.

b. For ( ) , when the spot price is ( ) the strike price, then the profit/loss will be equal to the strike price minus spot the price minus the ( )

2. . Assume you buy a March RM1625 FBM-KLCI call option for RM25 and hold until expiry. At what index level will you break-even?

3. Suppose you bought stock XYZ December RM8 put options for 40 sen. Did you buy a call or put options?

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