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Kinsteel Bhds equity price today is RM7.00. 60-day call 60-day put 6.60 call = 0.80 6.60 put = 0.10 7.00 call = 0.40 7.00 put

Kinsteel Bhds equity price today is RM7.00.

60-day call

60-day put

6.60 call = 0.80

6.60 put = 0.10

7.00 call = 0.40

7.00 put = 0.30

7.60 call = 0.09

7.60 put = 0.90

Required:

  1. State the options which breakeven. (2 marks)
  2. Is the 90-day cost of option be larger or smaller than the cost of option above if it was

(i) a call option (1 mark)

(ii) a put option (1 mark)

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