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Page 4am Home Insert 4 of 1068 words Design Layout US} English [Australia] References Mailings Review View Help FOXIT PDF ,0 Search Question 3. [3 marks] The following webpage discusses 10 trading strategies, https:f/www.investoped i a.com.'tra di ngfoptionsrstrategies;r If you anticipate that stock price will rise, which strategies should you take? (0.5 marks} If you anticipate that stock price will drop, which strategies should you take? {0.5 marks} If I.u'ou anticipate that stock price will roughly stay, which strategies should you take? {0.5 ma rks} If you anticipate that stock price will move a lot [either risk or decline}. which strategies should you take? [0.5 marks] Please summarize on how to choose a trading strategy. (1 mark} question 4. [3 mark] Two companies have investments which pay the following rates of interest: Fixed Float Firm A 5% Libor Firm B 8% Libo r+D.596 Assume A prefers a fixed rate and B prefers a oating rate. Show how these two firms can both benefit by entering into a swap agreement. If an intermediary charges both parties equally a 0.1% fee and any benefits are spread equally between Firm A and Firm B, what rates could A and E receive on their preferred interest rate? [2 marks} Please drawthe cash flow chart. (1 marks} ID: Focus E i Share Fl Comments ++ 100%