Question 6 Options Strategies (20 Marks) 6.1. An investor purchases a put contract with an exercise price of R120 for a premium of R4. The investor simultaneously purchases the underlying share for R125. Determine the profit on this strategy if the share price at the expiration date (i) drops to R100; or (ii) increases to R140. (10 marks) 6.2. An investor writes a call option with an exercise price of R150 and a premium of R5. The investor simultaneously purchases the underlying share for R130. Determine the profit on this strategy if the share price at the expiration date (i) drops to R120; or (ii) increases to R160. (10 marks)