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(i) The British-Swedish multinational pharmaceutical and biotechnology company. AstraZeneca PLC, is best known for its involvement in developing the Oxford-Astrazeneca COVID19 vaccine. Last month, some

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(i) The British-Swedish multinational pharmaceutical and biotechnology company. AstraZeneca PLC, is best known for its involvement in developing the Oxford-Astrazeneca COVID19 vaccine. Last month, some reports were published on the side effects of AstraZeneca COVID-19 vaccine. Consequently. 18 countries suspended the AstraZeneca COVID-19 vaccine to investigate its possible side effects. Since last month, the stock price of AstraZeneca PLC has varied between RM7.00 and RM7.50. The results of the side effects investigation will be released next week. If the results show that the vaccine is safe and effective, the demand for the vaccine and as a result the company's share price will rise significantly. However, if the results prove that AstraZeneca vaccine causes blood clots, there would be a huge fall in their stock price. Using the information below, outline an appropriate option strategy. The stock is trading at RM7.20 today. Three-month options on AstraZeneca PLC are priced as follows. RM7.00 call @ RMO.16 RM7.50 call @ RMO.10 RM7.00 put @ RMO.20 RM7.50 put @ RMO.28 a) In this case, indicate what strategy you would use from the options given above

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