thats all info given

Question 3 (a) Show the impact on call and put option prices based upon the following scenarios. The impact is an increase, a decrease or no changes. (i) A company announces a cut in forthcoming dividends. (4 marks) (ii) Given rumours of an impending merger, a company's underlying stock becomes more volatile. (4 marks) (iii) Bank Negara announces a cut in interest rates. (4 marks) (iv) In line with the current bearish trend, the stock falls in value. (4 marks) (v) The Securities Commission allows a company to extend the maturity period on its outstanding stock options. (4 marks) (b) What is a credit linked note ? Show its equivalence with straight bonds and options. How does a credit linked note protect an issuer's credit exposure ? (5 marks) [Total : 25 Marks)