QUESTION 9 Consider the following scenario and answer the questions that follow: Scenario A hedge fund charges 2% annual management fee calculated on asset under management as at 31 December of each year. You are one of their clients, and the assets under management that Phoenix is managing for you is R21 000000 as at 31 December 2019. Phoenix also charge a 20\% of outperformance, incentive fee (ie. This is a performance fee if they beat benchmark). The benchmark you have given them is CPI + 3\%. CPI as at 31 December 2019 is 6%. Phoenix's performance (ie. their return) for the year ending 31 December 2019 was 12\%. 9.1 What is the management fee that should be paid to Phoenix for the 2019 year? Show [2] your calculations. answer here 9.2 Is there a performance fee payable to Phoenix, and if so, how much is it? Show your [4] calculations. answer here 9.3 Additional Information [2] In the 2019 year, the portfolio manager at Phoenix goes short a put option on BHP Billiton, with a strike price of R220. 9.3.1 Explain what this means for the buyer of the put option on the other side of the trade. answer here 9.3.2 Select the correct option. From the point of view of the portfolio manager (who was the writer of the put option), if Biliton is currently trading at R240 and the option has not yet expired, the option is: In the money Out-of-the-money At-the-money 9.4 What is a "margin call"? [4] answer here TOTAL MARKS [12]