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 are profitable and calculate their intrinsic values. (6 marks) (b) (2 marks) State the options which breakeven. 1 (C) Is the 90-day cost of option be larger or smaller than the cost of option above if it was (i) a call option (ii) a put option (1 mark) (1 mark) Question 2 Calculate the intrinsic value and time premium for 60-day call and put options in question 1. (12 marks) 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 are profitable and calculate their intrinsic values. (6 marks) (b) (2 marks) State the options which breakeven. 1 (C) Is the 90-day cost of option be larger or smaller than the cost of option above if it was (i) a call option (ii) a put option (1 mark) (1 mark) Question 2 Calculate the intrinsic value and time premium for 60-day call and put options in question 1. (12 marks)