help Question $4$

$($a$)$ Eager Industries take a short$-$term loan of RM$250,000$ from a bank for $90$ days.

The bank charges an interest based on the base lending rate $($BLR$)$ plus $1\%,$ and

the prevailing BLR is $4\%.$

Required:

$($i$)$ Calculate the interest sum incurred for the $90-$day borrowing. $[$Sum

borrowed $$ Rate charged $$ no of day$/365]$

$(3$ marks$)$

$($ii$)$ Determine the nominal interest rate on the loan. $[$Interest sum $$ Principal$]$

$(3$ marks$)$

$($iii$)$ Appraise the effective annual rate of the loan. where

$n=$ no$.$ of days of short$-$term borrowing

$(4$ marks$)$

$($b$)$ Compare the financial lease and operating lease and highlight their key

differences.

$(7$ marks$)$

$($c$)$ Assume that you are CFO for a multinational company, which uses various

approaches in funding its business expansion and hedging its financial exposure.

Today you are presenting to senior management derivative instruments that are

available to minimise financial risks. Illustrate a call option with full details and

evaluate the three possible scenarios at its expiration date if the strike price is $$50.$

$(8$ marks$)$

$[$Total: $25$ Marks$]$