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Kelo Berhad is a large telecommunication firm whose stock has traditionally been trading in RM8.50 to RM9.50 range. The company currently is facing problems with
Kelo Berhad is a large telecommunication firm whose stock has traditionally been
trading in RM8.50 to RM9.50 range. The company currently is facing problems with
it illegal setup of communication tower in Sabah, thus instability on stock price will
occurred. There is likelihood that the company will be legally prosecuted.
With the following information;
RM9.50 call @ 0.35
RM8.50 put @ 0.45
(i) Outline the strategy and calculate the break-even point(s).
(ii) Draw a table and graph the position.
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