Estimate the total cost of strategy

Assignment Help Finance Basics
Reference no: EM133069372

A: Bullish, choose ticker symbol (HOG) and buy 5 call contracts on that stock (Strike price = closest to its market price, expiration = December 21 or January or February 21) Post the price of call for strategy 1 on as soon as you purchase the call. Also post your total costs. (Hypothetically Speaking)

B: Bullish, choose the same company of question 1 and sell 5 put contracts on that stock (Strike price= closest to its market price, expiration December 21 or January or February 21). Post the price of put for this strategy. Also post your total credits for selling the put option.

C: Bullish Synthetic long stock, choose the same company above and create a synthetic long stock using options on that stock. Explain your purchase or sale and estimate the total cost of this strategy

D: Bearish Synthetic short stock, choose the same company above and calculate synthetic short stock using options on that stock. Explain your purchase or sale and estimate the total cost of this strategy.

Reference no: EM133069372

Questions Cloud

Find the sharpe ratio : Find the Sharpe Ratio of the Following Tech Portfolio. Use stock data from tidyquant package, use the contrafund.csv (Links to an external site.) to get the dat
Calculate the inflation rate for 2020 : Question 1. Here are the details on 4 bonds. Current market rates are 5.5% for all 4 bonds. Which bond would you buy and why? Hints: Current price is the 'Ask'
How much would be required to pay out the loan : The interest rate is 12% compounding annually. How much would be required to pay out the loan after 12 years
What is the company WACC : Suppose the most recent dividend was $4.75 and the dividend growth rate is 5.2 percent. What is the company WACC
Estimate the total cost of strategy : A: Bullish, choose ticker symbol (HOG) and buy 5 call contracts on that stock (Strike price = closest to its market price, expiration = December 21
Bond equivalent yield and current yield of security c : Assume you have $1 million Cash and are trying to choose among three securities to invest. All are default free fixed income securities.
How much principal is amortized with the first payment : $60,000 is borrowed, to be repaid in three equal, annual payments with 10% interest. Approximately how much principal is amortized with the first payment?
What is monthly? payment : If you must pay 6.9% compounded? monthly, what is your monthly? payment? How much interest will you? pay?
Determining the selling price of the? house : If interest is 4.5% compounded? monthly, what was the selling price of the? house? How much interest will they pay in 15 ?years?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd