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b. Juliet, a financial manager of Badak Berendam Berhad, buys call options on 50,000 barrels of oil with an exercise price of RM140 per barrel.

b. Juliet, a financial manager of Badak Berendam Berhad, buys call options on 50,000 barrels of oil with an exercise price of RM140 per barrel. Juliet simultaneously enters the put option on 50,000 barrels of oil with the price of RM40 per barrel. Find out her gains and losses if oil prices are RM135, RM137, RM140, RM143 and RM145. Interpret your findings. (12 Marks)

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