HW, Risk Management

Assignment Help:
From CMEGROUP website – Look up / Report a FUTURES closing price over 3 consecutive days, and determine your $$ Profit or Loss each of the 2 in-between days. Assume you are SHORT one contract. You must list the contract specifications.

• From CBOE website or YAHOO FINANCE, Look up / Report one OPTION Put or Call price. Pick a well known stock that pays little or no dividend. The strike price should be near the current stock price. The expiration date should be between 2 and 4 months. All these details / dates / stock price should be reported. Assume you buy that option contract (for 100 shares) at the end of “day 1” and sell it at the end of “day 2. ” Report those 2 closing prices and your total $ profit of loss.
ALSO, use a Black-Scholes-Merton Options Calculator to determine the theoretical option price for the same “day 1” option. Specify all your inputs. The Volatility Input (the stock return standard deviation) will be the trickiest parameter. You will have to search it. Report / Note the comparison between the actual price at the end of “day 1” and theoretical option price you found.

Related Discussions:- HW

Insurance, insurance is a pool of risk?discuss

insurance is a pool of risk?discuss

Determine the optimal for investor, The investor has constant wealth 1 and ...

The investor has constant wealth 1 and is offered to invest in shares of a project that either gains 3/2 or loses 1 with equal probabilities. Therefore, if the investor obtains sha

Risk Review, Macville Pty Ltd. Risk management case study

Macville Pty Ltd. Risk management case study

Disaster recovery plan, Devise a disaster recovery plan • Business Impact A...

Devise a disaster recovery plan • Business Impact Analysis • Treatment Strategies: o Risk Avoidance o Risk Reduction o Risk Transfer o Risk Retention • Ingredients of a disaster re

Task for report and appendices, The task for Report & Appendices The ma...

The task for Report & Appendices The main aim of the appendices is to show a series of graphical and descriptive material which demonstrate your technical knowledge of the proc

State the types of international risk, International Risk: International r...

International Risk: International risk can include exchange rate risk and country risk. (i) Exchange Rate Risk: All investors who invest internationally in today's increasing

Register sample format and example risk, Using the above information, and a...

Using the above information, and any other information (state assumptions), create the start of a risk register for the project, using the Risk Register Sample below as a guide. Id

Forward-forward and forward spot swaps in managing risks, Question: You...

Question: You have been appointed as the treasurer of Manchester International, an electronic firm with many subsidiaries abroad. The management of Manchester International is

Write Your Message!

Captcha
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