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Question 1 Kinsteel Bhd's equity price today is RM7.00. 60-day call 6.60 call = 0.80 7.00 call = 0.40 7.60 call = 0.09 60-day put

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Question 1 Kinsteel Bhd's equity price today is RM7.00. 60-day call 6.60 call = 0.80 7.00 call = 0.40 7.60 call = 0.09 60-day put 6.60 put = 0.10 7.00 put = 0.30 7.60 put = 0.90 Required: State the options which breakeven. (a) (2 marks) (b) Is the 90-day cost of option be larger or smaller than the cost of option above if it was (1) a call option (1 mark) a put option (1 mark) Question 1 Kinsteel Bhd's equity price today is RM7.00. 60-day call 6.60 call = 0.80 7.00 call = 0.40 7.60 call = 0.09 60-day put 6.60 put = 0.10 7.00 put = 0.30 7.60 put = 0.90 Required: State the options which breakeven. (a) (2 marks) (b) Is the 90-day cost of option be larger or smaller than the cost of option above if it was (1) a call option (1 mark) a put option (1 mark)

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