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Marion currently has 200 shares of BHP that she acquired for R96 each. She plans to sell them in six months and wants to use

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Marion currently has 200 shares of BHP that she acquired for R96 each. She plans to sell them in six months and wants to use derivatives to hedge the risk of a share price decline. She has decided to purchase put contracts matching the value of her shares after establishing that a six-month put option on a single share of BHP with an exercise price of R95 gets a premium of R7.50. Required: conduct the necessary calculations and fill-in the missing information. a. If in 6 months, the price of a BHP share is R94 then, Marion's payoff and profit would be choose... v respectively. b. If in 6 months, the price of a BHP share is R100 then, Marion's payoff and profit would be Choose... respectively share price decline. She has decided to purchase put contracts matching value of h Choose... ablishing that a six-month put option on a sin R94 and - R9.5 share of E R95 and R87.5 e price of R95 gets a premium of R7.50. R95 and -R7.5 R94 and -R8.5 Required R95 and -R86.5 cessary calculations and fill-in the missin informat R95 and -R9.00 R95 and -R8.5 R100 and -R3.5 a. If in 6 R94 and R7.5 fa BHP share is R94 then, Marion's payoff an would be Choose... respectively. b. If in 6 months, the price of a BHP share is R100 then, Marion's payoff a profit would be Choose... respectively, value of her shares after establishing that a six-month put option on a share of BHP with an exercise price of R95 gets a premium of R7.50. stion calculations and fill-in the mis Required: cond Choose... information. R100 and -R8.5 R100 and -R103.5 R100 and R4.0 a. If in 6 month R95 and -R8.5 R95 and -R86.5 would be Choo R100 and R92.5 R100 and R7.5 R95 and -R7.5 b. If in 6 month R100 and -R3.5 share is R94 then, Marion's payoff ively. share is R100 then, Marion's payo profit would be Choose.. respectively

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