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2.1 The following information of a long call option for KLECHEY Ltd shares is provided: Long call option (KLECHEY Ltd shares) Strike price : R30

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2.1 The following information of a long call option for KLECHEY Ltd shares is provided: Long call option (KLECHEY Ltd shares) Strike price : R30 Premium : R3 a) Calculate the break-even point of the long call option for KLECHEY Ltd shares. Show all the calculations (2) b) Copy and complete the following profit or loss table for the long call option for KLECHEY Ltd shares. (4) Strike price Asset price at maturity Premium paid Intrinsic value of call Holder's pay- off 3 0 30 33 35 30 30 30 3 ? ? -3 ? ? 3 c) Construct the long call option pay-off diagram for KLECHEY Ltd shares. Fully label your diagram (5) d) Mention and explain any six variables that affect the value (price) of an option (6)

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