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

Asset registration update, what are the risk management in an asset registe...

what are the risk management in an asset register that is not updated on a timely basis

Liquidity risk managment, how to write the literature review on liquidity r...

how to write the literature review on liquidity risk management and supervision

Roles and responsibilities for risk management, Determine the roles and res...

Determine the roles and responsibilities for risk management at senior management level • The role and contents of the risk management strategy, including risk profile, risk app

Define the meaning of return, Define the meaning of Return Return is th...

Define the meaning of Return Return is the amount or rate of produce, profits, proceeds which accrues to an economic agent from an undertaking or investment. It's a reward for

Explain the term risk assessment, Question: (a) Explain the term Risk ...

Question: (a) Explain the term Risk assessment and outline the provision of the Occupational Safety and Health Act 2005 with respect to risk assessment. (b) Risk Assessment

Methods of risk management, Risk is inherent in business and hence there is...

Risk is inherent in business and hence there is no escape from the risk for a businessman. However, he may face this problem with greater confidence if he adopts a scientific appro

List principles of sensible risk management, Question 1: (a) List ten p...

Question 1: (a) List ten principles of sensible risk management. (b) There is a legal duty for employers to prevent ill-health which can be caused by work. Describe the step

Discuss the potential health risk, Question: (a) Discuss the potential...

Question: (a) Discuss the potential health risk which composting can pose to workers or to those located near a facility. (b) A number of concerns have been identified in

What is risk appetite?, QUESTION 1 A. Answer all of the following (a...

QUESTION 1 A. Answer all of the following (a) What is risk appetite? (b) List any two risk responses (c) What does ITIL stand for? (d) What is a business case? (

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