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please guys (A) In December, a treasurer receives a notification of a RM20,000,000 borrowing requirement in March the following year. The loan will be needed

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(A) In December, a treasurer receives a notification of a RM20,000,000 borrowing requirement in March the following year. The loan will be needed for 6 months. By using strip hedging (combining March and June futures contracts), what is the best strategy that the treasurer should take? (Indicate the strategy & number of contracts) (5 marks) (B) You are the fund manager who holds 500 shares of XYZ stock. This XYZ stock price is stable and it hardly provides any capital gains. You would like to keep this stock in your portfolio to have diversification benefit. Discuss the best strategy that you could implement with the aim to gain revenue enhancement. The current market price for XYZ is RM6.00. Call options Put Options XYZ 5.80 @ 0.15 XYZ 5.80 @ 0.10 XYZ 6.00 @ 0.13 XYZ 6.00 @ 0.13 XYZ 6.50 @ 0.10 XYZ 6.50 @ 0.15 You are required to answer the following questions: (i) Name and outline the strategy. (4 marks) (ii) Use the possible prices below to produce a payoff table to show the net profit/loss. St 5.00 5.50 5.80 6.00 6.50 6.90 7.00 7.20 7.40 (6

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