a. Kent bought 200 shares of a stock trading in the Bursa Malaysia at RM12 per share. Over time, the price of the stock increased to RM18 per share. Since the COVID 19 pandemic in Malaysia, there have been days where the market was very volatile. Kent still thinks that the value of the stock is undervalued because he has done a lot of fundamental and technical analysis on the stock. When he heard that Bursa Malaysia is offering options on the stocks that trade in the exchange, he consults with his broker on the different methods of protecting his profit and, at the same time, not lose the appreciation potential of the stock. After the consultation, Kent decides to buy a put on the stock. His broker tells him that he can buy six-month puts, with a strike price of RM18, at a cost of RM1.5 per option. i. Given the circumstances surrounding Kent's current investment position, explain the benefits would be derived from using puts as a hedge device? Justify answers with the major drawback? (4 marks) ii. What will be Kent's minimum profit if he buys two puts at the indicated price? How much would he make if he did not hedge but instead sold his stock immediately at a price of RM18 per share? (4 marks) iii. Assuming Kent uses two puts to hedge his position, indicate the amount of profit he will have if the stock moves to RM25 by the expiration date of the puts. What if the stock drops to RM11 per share? (5 marks) iv. Should Kent use the puts as a hedge and under what conditions should he not use puts as a hedge? (4 marks)