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(C) Assume you purchase 100 units of Wayra share at RM105 per share. To protect your investment, your remisier advise you to also purchase an
(C) Assume you purchase 100 units of Wayra share at RM105 per share. To protect your investment, your remisier advise you to also purchase an option as back up. Since share prices fluctuates all the times, and you scared risking your total investment, you agreed to the remisier's suggestion and proceed to buy the option at a strike price of RM105 per share. The option has an expiration date of 30 days and you pay RM600 as the premium. i. Calculate total cost of your shares. (2 marks) ii. Which type of option should you purchase? (2 marks)
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