Mr. Lin has entered the following accumulator Trade date: February 25, 2020 Initial Valuation Date: February 26, 2020 Maturity Date: Mar 1, 2021 Underlying: 700 HK (Tencent Holdings Ltd) Initial Stock Price: HKD 401.60 Total number of Expiries: 249 Notional Per Expiry: 50 shares Strike Price: 364.6930, being 90.81% X initial Stock Price Knock-Out Price: 105% * initial stock Price Accumulated shares will be delivered every 2 weeks Shares will not be accumulated on the day it is knocked out Initial Margin: 30% of maximum delivery 1) What is the maximum exposure of the trade? 2) Please calculate the number of shares accumulated and delivered? (based on the daily closing table provided) 2020-05-22 412.4 2020-04-29 2020-05-21 2020-05-20 2020-05-19 2020-05-18 433.4 2020-04-28 440 2020-04-27 430 2020-04-24 423 2020-04-23 417 2020-04-06 417.2 2020-04-03 413 2020-04-02 406.4 2020-04-01 411.6 2020-03-31 383 381.4 2020-03-16 341.8 2020-02-24 376.4 2020-03-13 365 2020-02-21 379.8 2020-03-12 363.6 2020-02-20 410 374.4 2020-03-11 378.4 2020-02-19 411.4 380.2 2020-03-10 2020-02-18 408.2 390.4 401 410 2020-04-09 406 2020-04-08 400 2020-04-07 2020-05-15 421.2 2020-04-22 2020-05-14 430.6 2020-04-21 2020-05-13 429.6 2020-04-20 408.6 2020-03-26 2020-05-12 431 2020-04-17 409.6 2020-03-25 2020-05-11 435 2020-04-16 406.8 2020-03-24 2020-05-08 418.2 2020-04-15 395 2020-03-23 2020-05-07 407.2 2020-04-14 395 2020-03-20 2020-05-06 391.4 2020-03-19 2020-05-05 385 2020-03-18 2020-05-04 387.6 2020-03-17 409.4 2020-03-30 376.6 2020-03-09 377.4 400.6 2020-03-27 382.4 2020-03-06 395.8 381.8 2020-03-05 406.2 2020-02-17 416.6 2020-02-14 415 2020-02-13 416.4 380 2020-03-04 394 2020-02-12 365.2 2020-03-03 348 2020-03-02 359.6 2020-02-28 343 2020-02-27 334 2020-02-26 399.6 349.8 2020-02-25 401.6 394 2020-02-11 389.6 411 409 2020-02-10 400.6 386 399.2 2020-02-07 402.4 2020-02-06 400 2020-02-05 392.2 2020-02-04 393 3) What will be the Profit and Loss if the shares accumulated were sold at one time at the knock out date at closing price. 4) Calculate the ROI of the transaction. 5) What is the underlying option structure of the trade? 6) What will be the view of the investors when he is considering to enter into this trade and what will be the other possible ways to express such view, what are the pros and cons? Please show all calculations