B. In June 2021, Mr Park, a portfolio manager manages a RM15 million portfolio that closely track the movement of the FBM KLCI. He is extremely bearish on the stock market in the coming month due to the looming uncertainties in the market. Mr Park would like to completely reduce his exposure in the stock market by hedging using index futures (FKLI). The current FBM KLCI is at 1,600 points and the FKLI for August 2021 is trading at 1,610. Required: Advise on the appropriate action that Mr Park should take. Show him the outcome of the strategy if after one month, the stock market falls and the FBM KLCI stands at 1,480 whereas the August FKLI at 1,483. (Up to 5 marks is allocated for the calculation) (7 marks) B. In June 2021, Mr Park, a portfolio manager manages a RM15 million portfolio that closely track the movement of the FBM KLCI. He is extremely bearish on the stock market in the coming month due to the looming uncertainties in the market. Mr Park would like to completely reduce his exposure in the stock market by hedging using index futures (FKLI). The current FBM KLCI is at 1,600 points and the FKLI for August 2021 is trading at 1,610. Required: Advise on the appropriate action that Mr Park should take. Show him the outcome of the strategy if after one month, the stock market falls and the FBM KLCI stands at 1,480 whereas the August FKLI at 1,483. (Up to 5 marks is allocated for the calculation) (7 marks)