1. TOT Investments would like you to secure and The stock price is R40 and a more calation where of R45 5.8 TOT has R7000 to west. You are 2 by one involves investing in stock of 300 shares and the other is option contractat per What is the potential gains and restore the share price goes up to 50 odsto? 2. The following are the spot and for change rate on 12 February 2020 OFFER Sport R15 25 R15 23 month forward R15 20 3-month forward R15.18 R1527 month forward R15 15 R15 25 month forward R15.10 15:20 A treasure from Mopere Logistics knows that the corporation 2 milion in 6 month and wants to hediye against the exchange moves. The bark agost will on the the spot priore and more. How much forward contractor er mother contractared to be conso exchange the deep RS. HOW much is the forward contract wordt? Draw a graph indicating when a contract pays offron a long position and a short position Question 2 (20 marks) 1. T.O. Investments would like you to speculate a rise in the price of a certain stock. The stock price is R40 and a 3-month call-option with a strike of R45 costs R5.8. T.O.T has R7 000 to invest. You identified 2 strategies whereby one involves investing in stock of 200 shares and the other involves 30 option contracts at par. 1. What is the potential gains and/or losses for each strategy if the share price goes up to R50 or drops to R30? 2. The following are the spot and forward quotes for RIS exchange rate on 12 February 2020 BID OFFER Spot R15 26 R15.29 1 month forward R15.20 R15.27 March 3-month forward R15.18 R15.27 May 6-month forward R15.15 R15.25 August 9-month forward R15.10 R15.20 November A treasurer from Mapere Logistics knows that the corporation will $2 million in 6 month and wants to hedge against the exchange moves. The bank agrees that it will sell om the agreed date. ii. If the spot price rose to R16 at the end the 6 months. How much is the forward contract worth? ii. If another contract is agreed to by the corporation and bank agrees to exchange $1 million at the end of 9-month while the spot price is R15. How much is the forward contract worth? iv. Draw a graph indicating when a contract pays off from a long position and a short position CS Scanned with CamScanner 1. TOT Investments would like you to secure and The stock price is R40 and a more calation where of R45 5.8 TOT has R7000 to west. You are 2 by one involves investing in stock of 300 shares and the other is option contractat per What is the potential gains and restore the share price goes up to 50 odsto? 2. The following are the spot and for change rate on 12 February 2020 OFFER Sport R15 25 R15 23 month forward R15 20 3-month forward R15.18 R1527 month forward R15 15 R15 25 month forward R15.10 15:20 A treasure from Mopere Logistics knows that the corporation 2 milion in 6 month and wants to hediye against the exchange moves. The bark agost will on the the spot priore and more. How much forward contractor er mother contractared to be conso exchange the deep RS. HOW much is the forward contract wordt? Draw a graph indicating when a contract pays offron a long position and a short position Question 2 (20 marks) 1. T.O. Investments would like you to speculate a rise in the price of a certain stock. The stock price is R40 and a 3-month call-option with a strike of R45 costs R5.8. T.O.T has R7 000 to invest. You identified 2 strategies whereby one involves investing in stock of 200 shares and the other involves 30 option contracts at par. 1. What is the potential gains and/or losses for each strategy if the share price goes up to R50 or drops to R30? 2. The following are the spot and forward quotes for RIS exchange rate on 12 February 2020 BID OFFER Spot R15 26 R15.29 1 month forward R15.20 R15.27 March 3-month forward R15.18 R15.27 May 6-month forward R15.15 R15.25 August 9-month forward R15.10 R15.20 November A treasurer from Mapere Logistics knows that the corporation will $2 million in 6 month and wants to hedge against the exchange moves. The bank agrees that it will sell om the agreed date. ii. If the spot price rose to R16 at the end the 6 months. How much is the forward contract worth? ii. If another contract is agreed to by the corporation and bank agrees to exchange $1 million at the end of 9-month while the spot price is R15. How much is the forward contract worth? iv. Draw a graph indicating when a contract pays off from a long position and a short position CS Scanned with CamScanner