(A) Assume on 27 June 2020, you purchase one December FBMKL CI futures contract at 1,550 and hold the positions for five days. The initial margin for FBMKL CI futures is RM4,000. The maintenance margin is RM4000. Given the following daily settlement prices, construct a table showing the variation margin and the margin call (if any). Date Settlement Price 27 June 1,550 28 June 1,530 29 June 1,515 30 June 1,555 31 June 1,475 (10 marks) (B) Based on the scenario below, answer the following questions. Stock Market Futures Market June 2020 CI @ 1620.00 Short November KLCI futures contract Holds portfolio valued at RM5 million with 1610.00 beta of 0.7 November 2020 CI has dropped 3%. Close out the November KLCI futures (1) Explain why the investor takes this hedging strategy. (2 marks) (ii)How many contracts must the hedger use to have a precise hedge? Calculate the net profit/loss made due to the hedging. (8 marks) (A) Assume on 27 June 2020, you purchase one December FBMKL CI futures contract at 1,550 and hold the positions for five days. The initial margin for FBMKL CI futures is RM4,000. The maintenance margin is RM4000. Given the following daily settlement prices, construct a table showing the variation margin and the margin call (if any). Date Settlement Price 27 June 1,550 28 June 1,530 29 June 1,515 30 June 1,555 31 June 1,475 (10 marks) (B) Based on the scenario below, answer the following questions. Stock Market Futures Market June 2020 CI @ 1620.00 Short November KLCI futures contract Holds portfolio valued at RM5 million with 1610.00 beta of 0.7 November 2020 CI has dropped 3%. Close out the November KLCI futures (1) Explain why the investor takes this hedging strategy. (2 marks) (ii)How many contracts must the hedger use to have a precise hedge? Calculate the net profit/loss made due to the hedging. (8 marks)