As an active investor in Bursa Malaysia, you plan to invest RM100 million in January and RM75 million

in March. From the market analysis you expect there will be a bullish market from January to March.

Today, early January, FTSE Bursa Malaysia is price at 1055 while 3 months forward FKLI, 6 months

forward FKLI, 9 months forward FKLI and 12 months forward FKLI are quote at 1070, 1079, 1089 and

1099 respectively. In addition, the current KLIBOR rate in the market is at 6.78%. Assuming you plan

to manage the price fluctuation and your portfolio has a portfolio beta of 0.85, show your benefit from

your strategy if the price of FTSE Bursa Malaysia index is now at 1060 and following price report of

FKLI contracts is published in March are as follows:

Price Report of FKLI contract as at 1 March 2010 NAME MONTH OPEN HIGH LOW BID ASK SETT.P CHANGE OI VOLUME FKLI Spot 1045.00 1095.50 1045.00 1283.00 1284.00 1065.00 0.00 15663 4,146 FKLI 3 months forward 1286.00 1290.50 1281.50 1281.50 1283.00 1281.50 0.00 238 247 FKLI 6 months forward 1288.00 1292.50 1283.00 1283.00 1284.00 1283.50 0.00 15663 4,146 FKLI 9 months foward 1286.00 1290.50 1281.50 1281.50 1283.00 1281.50 0.00 238 247