Question 2a. Miss Liza, the CFO of Nice Biscuit Berhad (NBB) believes that all corporate securities haveimplicit or explicit option features and as a result, understanding securities that possessoption features requires knowledge of the factors that determine an option's value. MissLiza is also aware that the most familiar options are stock options.On 13th June 2024, Miss Liza buys call options on 50,000 units of Petronas DaganganBerhad (PDB) shares with an exercise price of RM40 per unit. The value of the options isRM2 per unit and the termination date is on 30th June 2024.On 30th June 2024n the share price of PDB share is RM42.From the above information you are required to compute Miss Liza's gain or losses.Based on your computation, explain to Miss Liza about this situation.

Conclusion: This transaction does not result in any gain or loss for Miss Liza. Although the market…

Answered: Question 2 a. Miss Liza, the CFO of…

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter14: Property Transactions: Capital Gains And Losses, § 1231, And Recapture Provisions

Section: Chapter Questions

Problem 43P

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