(a) Explain derivatives. (2 marks) (b) Differentiate Exchange-Traded Derivatives from Over the Counter Derivatives. (4 marks) (c) Muammar deposited RM18,000 as margin to buy four FCPO contracts at a price of RM2,200 per metric ton. At the end of the day, the FCPO price settle at RM2,300. Muammar decides to hold the position until Day 2. On Day 2, the FCPO price went up to RM2,470 and Muammar decided to realise his profit by closing his position. i. Calculate the cash position of Day 1 ii. Compute Muammar's realised profit on Day 2 (3 marks) (3 marks) (d) Yasmin deposited RM40,000 as margin|to buy five FCPO contracts at a price of RM2,150 per metric ton. At the end of the day, the FCPO price settle at RM1,890. Yasmin decides to hold the position until the next day anticipating the price might goes up again. On Day 2, price of the FCPO increases to RM1,920, thus Yasmin still hold on to her investment. On Day 3, the market declines and FCPO price drops to RM1,770 and Yasmin decides to sell and close out her FCPO position. i. Calculate the cash position of Day 1 ii. Compute Yasmin's cash balances on Day 2 (2 marks) iii. Calculate Yasmin's profit / (loss) from her futures trading. (3 marks) (3 marks) (a) Explain derivatives. (2 marks) (b) Differentiate Exchange-Traded Derivatives from Over the Counter Derivatives. (4 marks) (c) Muammar deposited RM18,000 as margin to buy four FCPO contracts at a price of RM2,200 per metric ton. At the end of the day, the FCPO price settle at RM2,300. Muammar decides to hold the position until Day 2. On Day 2, the FCPO price went up to RM2,470 and Muammar decided to realise his profit by closing his position. i. Calculate the cash position of Day 1 ii. Compute Muammar's realised profit on Day 2 (3 marks) (3 marks) (d) Yasmin deposited RM40,000 as margin|to buy five FCPO contracts at a price of RM2,150 per metric ton. At the end of the day, the FCPO price settle at RM1,890. Yasmin decides to hold the position until the next day anticipating the price might goes up again. On Day 2, price of the FCPO increases to RM1,920, thus Yasmin still hold on to her investment. On Day 3, the market declines and FCPO price drops to RM1,770 and Yasmin decides to sell and close out her FCPO position. i. Calculate the cash position of Day 1 ii. Compute Yasmin's cash balances on Day 2 (2 marks) iii. Calculate Yasmin's profit / (loss) from her futures trading