Mr. Wongis a fund manager at HJ Asset Management. He does not own any shares in MAS
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Mr. Wongis a fund manager at HJ Asset Management. He does not own any shares in MAS but relatively bullish on its outlook. He is worried about the rise in oil prices and the potential damage on MAS's profit. MAS stock is currently traded at RM7.00. He observed the following information about MAS stock options:
90-days RM6.50 call @ RM0.48
90-days RM6.50 put@ RM0.09
90-days RM7.50 call@ RM0.08
100 days RM7.50 put @ RM0.50
120-days RM6.50 put @RM 0.08
120-days RM7.50 call @ RM0.45
i.Given Mr. Wong's outlook and skepticism, outline an appropriate option strategy. (State the name of the strategy, plot the position, label all axes, maximum, minimum and break-even points).
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