Fatima – The Portfolio Manager at Al-Dhabi Capital

Fatima is building a short-term, high-growth portfolio and has decided to take a strong bullish (rise-anticipating) position on Tesla Inc. (TSLA) ahead of its earnings report. She needs to calculate the precise capital outlay for her trade.

Assumptions:

1. Each option contract represents 100 shares of the underlying stock.

2. Transaction costs and bid-ask spreads are ignored for simplification.

Question:

If Fatima's strategy requires her to purchase 4 call option contracts at the quoted strike price, what is the total amount of capital she would need to allocate for this position?

Question: Arabian Gulf Bank (AGB), headquartered in Manama, utilizes a one-year gap analysis period. The risk team forecasts a steepening of the yield curve due to strong long-term economic outlook coupled with the Central Bank of Bahrain keeping short-term rates relatively steady. This results in an asymmetrical rate change for different maturity buckets.

The bank's rate-sensitive positions and the corresponding rate changes are:

What is the total change in the bank's Net Interest Income (ΔNII)?

Write your answer to 2 decimal points for example ( -2.75 or 5.28).

Question : The Bahrain Financial House (BFH) is concerned about the impact of a potential rate cut by the Central Bank of Bahrain, possibly following global economic trends. The Chief Risk Officer simulates a uniform drop in interest rates across all maturities.

Given the following data from the bank's one-year repricing gap:

What is the change in the bank's Net Interest Income (ΔNII)?

(Write your answer to 2 decimal points for example, -5.07 or 3.28)