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Question 23 Not yet answered Marked out of 25.00 You think XYZ stock has potential for an upward move in price. You have no position
Question 23 Not yet answered Marked out of 25.00 You think XYZ stock has potential for an upward move in price. You have no position whatsoever in the stock now. You would like to take the opportunity of any up movement in price but want to strictly limit your downside risk. XYZ Stock price now = RM 12.00 a) Demonstrate using a diagram/graph of the market outlook for XYZ stock. (2 marks) b) Given the information on the derivative market for the option below, outline 2 possible appropriate strategies. For Flag question each strategy 30 day Calls 11.00 call @ 1.55 12.00 call @ 0.70 13.00 call @ 0.22 30 day Puts 11.00 put @0.25 12.00 put@0.45 13.00 put @ 1.40 21 3:28 PM
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