Suppose an investor bought TRANSTAR share at RM40 last month. This month he sold a...
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Accounting
Suppose an investor bought TRANSTAR share at RM40 last month. This month he sold a call option at RM4 with an exercise price of RM50.
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Compute his profit when the share price is RM10. (2 marks)
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Compute his profit when the share price is RM20. (2 marks)
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Compute his profit when the share price is RM50. (2 marks)
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Compute his profit when the share price is RM60. (2 marks)
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Analyse the highest possible profit and lowest possible profit (or loss) based on the computation in (i) to (iv) above. Please do it as soon as possible,thanks!!
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