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can you please answer this ASAP QUESTION 1 a) Ali planning to buy 200 shares of Senheng stock but he immediately changes his mind and
can you please answer this ASAP
QUESTION 1 a) Ali planning to buy 200 shares of Senheng stock but he immediately changes his mind and sells Senheng stock. The broker's commission is RM50. This transaction has made Ali lost RM140. Find the difference between the bid and ask price per share on this stock. (4 Marks) b) As a well known dealer in the financial broker in Malaysia, your VIP investor (client), Mr. Aaron Aziz are busy with his career and he only manage to trade in derivatives market using an online trading platform. From his online electronic trading platform, the stock market shows the selling price is RM 100. You simplified all the option contract with their respective option premium on a stock market as an underlying asset in the table below: Strike (RM) Call (RM) Put (RM) 95 15.60 1.90 100 7.40 5.00 105 3.30 10.60 Answer the following question using the simplified information you've done above: ) Draw the profit diagram for straddles. i) Draw the profit diagram for strangles. ii) Between (1) and (ii), which strategy give better profit to Mr. Aaron? (12 Marks)Step by Step Solution
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