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HI. PLS HELP ME OUT TO ANSWER THE ABOVE QUESTION Q3 b and c !! will be very useful for me. EMERGENCY !! PLS CONSIDER

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HI. PLS HELP ME OUT TO ANSWER THE ABOVE QUESTION Q3 b and c !! will be very useful for me. EMERGENCY !! PLS CONSIDER

Q3. (a) Parabola Bhd stock recently closed at RM52.51. If you write a covered call on Parabola by writing one September call with a strike price of RM55, and buying 100 shares of stock at the market price. The option premium that you obtain from writing the call is RM370. (Hint: the stock will pay no dividends between now and the expiration date of the option) Required: Compute the total profit if the stock price remain unchanged? (2 marks) Compute the total profit if the stock price reach RM55? (4 marks) Compute the total loss if the stock price drop RM49? (4 marks) (b) Explain FIVE (5) differences between forward market and future market. (10 marks) If you are planning to take out a loan, it is important to do research and find a loan that best fits your needs and financial situations. Explain FIVE (5) factors that determine of your considerations before taking out a loan. (10 marks) [Total: 30 marks]

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