PUTRA Mr Jeng have the following information on Malaysia crude palm oil, Date today = 1 Nov 2020 Spot price=RM3300 of 3% per year I tick=RM25 Annual storage cost - RM 99 per ton (3% per annum) 3-month Futures Crude Palm Oil : FCPO_Janc2020 = RM3500 6-month Futures Crude Palm Oil : FCPO Aprilc2020 = RM3850 Suppose Mr Jeng with no current position in CPO is bearish (price going down) about CPO spot and futures prices over the next 3 months. Mr.Jeng interested to make profit in Malaysia derivative market a) Who is Mr. Jeng? Explain his role in the derivative market. (6 marks) b) What is the appropriate strategy for Mr. jeng based on his market expectation? (4 marks c) Demonstrate the profit or loss for Mr. jeng suppose CPO price in 90 days (at maturity) [10 marks) 1.20% higher 2. 20% lower 1 A- B 1 M of 27 28 DO og F Dil FB 0 F a M A 6 & 7 00 * 8 ) 0 CO g - Y U 0 P