1.J-Rata Corp can supply 50,000 metric tons (MT) of crude palm oil (CPO) to L-Brothers on 15^th March 2021. The current CPO price is RM3400 per MT. It is expected that the CPO could be trading at RM2700 per MT on 15^th March 2021. The FCPO (CPO Futures) is currently trading at RM3450 per MT. Each FCPO contract is 25 MTs. If the FCPO is trading at RM2100 per MT on 15^th March 2021, calculate the net sales revenue of J-Rata Corp in this supply transaction if it decides to hedge by using FCPO contracts.

2.J-Rata Corp shares are currently trading at $30 each. It is expected to increase by 10% or decrease by 6% during the next two-three months. If its strike price at maturity in six months is set as $32 and the risk free rate is 8% per annum for all maturities:

(a)calculate its call options price and its put option price currently.

(b) Test and prove that the put-call parity is holding based on your option pricing.

3.Mazzi Corp. shares are currently trading at RM14.00 each. A three-month put option on this share is priced RM0.50 at a strike price of RM15.00. The risk free interest is 10% per annum for all maturities. Observing this data, identify and calculate what are the arbitrage opportunities available.