(E) An investor is considering on investing in financial index which was closed at 6,478.730 points, up 0.23 per cent. Bank Muscat was up by 0.45 per cent with the trade value in the stock market of 65 OMR. The share is now trading in the spot market - put option with a strike price of 80 OMR and premium received of 20 OMR. As a fund manager, you are required to: Week 10 a) Discuss financial investment and derivatives. (5 marks) b) Calculate if the share price falls to 62 OMR on expiry date, what would be the profit/loss for the holder and writer of the option? (2 marks) c) Calculate the maximum profit/loss for the writer of the options. (3 marks) d) Critically analyse investment decision of an investor for the Bank Muscat share. (10 marks) (E) An investor is considering on investing in financial index which was closed at 6,478.730 points, up 0.23 per cent. Bank Muscat was up by 0.45 per cent with the trade value in the stock market of 65 OMR. The share is now trading in the spot market - put option with a strike price of 80 OMR and premium received of 20 OMR. As a fund manager, you are required to: Week 10 a) Discuss financial investment and derivatives. (5 marks) b) Calculate if the share price falls to 62 OMR on expiry date, what would be the profit/loss for the holder and writer of the option? (2 marks) c) Calculate the maximum profit/loss for the writer of the options. (3 marks) d) Critically analyse investment decision of an investor for the Bank Muscat share. (10 marks)