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J |_ QUESTION 3 423 smarts) As a speculator, you observed the following data 'om Malaysia Derivatives Eerhad. Im-lied Rate Johan has a portfolio of RM5D million and has bearish on KLIBCIIR futures market. Currently the beta is half volatile than the market, risk free rate is 5.5% and the dividend yield is 4.5%. As a requirement, Johan need to pay 10% initial margin of the contract value and to maintain 30% of initial margin. Today, 4* May Johan initiate the contract at trade at 8.25. Required: a} Compute the contract value, initial margin and maintenance margin. {4 marks} b} Prepare marked-to-market position. (6 marks} c} If the implied rate on day 6 equal to 4.12, calculate the prot loss and if there is a commission of RM 100 per contract. (3 marks} d} Determine the leverage investment. (3 marks} e} Do you think his expectation fulll his objective now? Why? As a speculator, what the benet(s} or disadvantage[s} has Johan gain from this strategy? {4 marks} 1} Contrast between long position and short. mmese positions. {8 marks}