Question
The Investment Research outlined a bullish outlook for the telecommunication sector this year as local players compete for the market dominance by leveraging attractive value-added
The Investment Research outlined a bullish outlook for the telecommunication sector this year as local players compete for the market dominance by leveraging attractive value-added packages for their respective fourth generation (4G services, otherwise known as Long Term Evolution (LTE). One of the players, Umobili.Com Berhad expects to see a 25 percent rise in the stock price due to efforts to expand long-term evolution (LTE) coverage.
Umobili.Coms share is currently trading at RM6. To bet on this expectation, Miss Aliyah buys 1,000 units of Umobilis option.
Below is the price quote of Umobilis December options:
| Type | Symbol | Maturity | Exercise | Premium |
| Call | MYUMB123E087 | December | RM6.00 | RM0.30 |
| Put | MYUMB123E087 | December | RM6.50 | Rm0.30 |
1. How much the profit or loss if the expectation is correct
2. What type of option Miss Aliyah would buy?
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Innovation In Public Transport Finance
Authors: Shishir Mathur
1st Edition
1138250139, 978-1138250130
