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(a) Referring to the above table, suppose a fund manager used A UG 315 index calls to make up a fund income shortfall of $16,624.

(a) Referring to the above table, suppose a fund manager used Aimage text in transcribedUG 315 index calls to make up a fund income shortfall of $16,624. How many contracts would be required ? (5 marks)

Income The following table is for part (a). August (AUG) Index Call Delta Strike Price Premium Delta Maximum Contracts 305 4.875 0.435 171 310 3.00 0.324 203 315 1.75 0.228 244 320 1.00 0.151 301 $83,362 60,900 42,700 30,100

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