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(a) Assume you sell 100 shares of Setia Alam Corporation sbort at RM43. You also buya 40 call option for RM4.80 to protect against the

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(a) Assume you sell 100 shares of Setia Alam Corporation sbort at RM43. You also buya 40 call option for RM4.80 to protect against the stock price going up. (O) If the stock ends up at RM60, calculate the overall gain or loss. (i) If the stock ends up at RVM20, calculate the overall gain or loss. (5 marks) (5 marks) (i) If you have an unprotected short sale position (no call option), what is the most you could lose? (1 mark) (iv) If you had a limit order to buy the stock and close out the position at RM54, calculate the net gain or loss. 2 marks)

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