Why using options is an effective way to reduce the risk

Assignment Help Financial Management
Reference no: EM132170240

Under 300 WORDS 

NO Wikipedia

Please respond to the following:

i) Justify why using options is an effective way to reduce the overall risk in a portfolio. Provide an example for your justification.

ii) Determine whether you would or would not invest in the options market. Support your decision with two reasons.

Reference no: EM132170240

Questions Cloud

Describing some significant ways to promote ethical behavior : Describing some significant ways to promote ethical behavior in organization's culture.
Why the company that you chose is or is not an investment : Provide a defense for why the company that you chose is or is not a good investment based only on its financial statements.
Why you believe would or would not require customization : Post your products and why you believe they would or would not require customization in the Discussion. Also respond to 3 people post.
Probability that the duration is between 5 and seven minutes : STA211 - Statistics and Demography Probability - Find the probability function of a random variable and find the probability that the duration
Why using options is an effective way to reduce the risk : Justify why using options is an effective way to reduce the overall risk in a portfolio. Provide an example for your justification.
Get payback from implementing the erp changes : Considering the ERP system, What specifically would the ERP fix in each case (manufacturing and service arenas).
How would you address sara concern : She would like to implement a process of using a database to assist her company in its marketing efforts. She is also concerned about online privacy.
Why diversification is a wise strategy for investors : Given the benefits of diversification, why shouldn't managers acquire firms in different industries to diversify a company?
Who is their direct competition : HFT4413 : Interview a Hotel General Manager or Head of Revenue Management and find their revenue strategy for their property.

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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