The purpose of this exercise is to compare the return on Tesla stock with the return...
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The purpose of this exercise is to compare the return on Tesla stock with the return on a set of options strategies. All returns should be calculated between November 15 and November 25. The Excel file includes price data for both dates. All options expire on December 9. Tesla's stock price was $194.42 on November 15 and $182.86 on November 25. Tesla does not pay dividends. Ignore margin requirements. For simplicity, assume that you can trade options at the midpoint price. One option contract is for 100 shares of the underlying. For the period between November 15 and November 25, calculate the dollar profit and the percentage return on the following strategies. A. Long 100 shares of Tesla B. Long at-the-money call option contract (X=195) C. Long at-the-money put option contract (X=195) Tesla Strike Tesla Strike 15-Nov-22 190 195 200 205 190 195 200 205 25-Nov-22 190 195 200 205 190 195 200 205 194.42 Bid 14.75 12.2 9.8 7.8 9.95 Bid 12.25 14.8 17.65 182.86 6.15 4.4 3.1 2.05 12.5 15.55 19.3 23.3 Midpoint Ask 14.98 12.3 9.9 7.93 10.05 12.45 15.03 17.92 Midpoint Ask 6.2 4.45 3.15 2.15 12.68 15.93 19.63 23.73 15.2 12.4 10 8.05 10.15 12.65 15.25 18.2 6.25 4.5 3.2 2.25 12.85 16.3 19.95 24.15 Volume 158 318 573 366 237 783 661 49 Volume 5,255 1,850 7,924 2,040 609 165 135 29 Open Int Type Exp Date 630 Call 671 Call 2,318 Call 896 Call 1,979 Put 861 Put 715 Put 392 Put Open Int Type Exp Date 2,725 Call 1,180 Call 4,339 Call 1,617 Call 2,151 Put 1,027 Put 917 Put 415 Put 12/9/22 12/9/22 12/9/22 12/9/22 12/9/22 12/9/22 12/9/22 12/9/22 12/9/22 12/9/22 12/9/22 12/9/22 12/9/22 12/9/22 12/9/22 12/9/22 The purpose of this exercise is to compare the return on Tesla stock with the return on a set of options strategies. All returns should be calculated between November 15 and November 25. The Excel file includes price data for both dates. All options expire on December 9. Tesla's stock price was $194.42 on November 15 and $182.86 on November 25. Tesla does not pay dividends. Ignore margin requirements. For simplicity, assume that you can trade options at the midpoint price. One option contract is for 100 shares of the underlying. For the period between November 15 and November 25, calculate the dollar profit and the percentage return on the following strategies. A. Long 100 shares of Tesla B. Long at-the-money call option contract (X=195) C. Long at-the-money put option contract (X=195) Tesla Strike Tesla Strike 15-Nov-22 190 195 200 205 190 195 200 205 25-Nov-22 190 195 200 205 190 195 200 205 194.42 Bid 14.75 12.2 9.8 7.8 9.95 Bid 12.25 14.8 17.65 182.86 6.15 4.4 3.1 2.05 12.5 15.55 19.3 23.3 Midpoint Ask 14.98 12.3 9.9 7.93 10.05 12.45 15.03 17.92 Midpoint Ask 6.2 4.45 3.15 2.15 12.68 15.93 19.63 23.73 15.2 12.4 10 8.05 10.15 12.65 15.25 18.2 6.25 4.5 3.2 2.25 12.85 16.3 19.95 24.15 Volume 158 318 573 366 237 783 661 49 Volume 5,255 1,850 7,924 2,040 609 165 135 29 Open Int Type Exp Date 630 Call 671 Call 2,318 Call 896 Call 1,979 Put 861 Put 715 Put 392 Put Open Int Type Exp Date 2,725 Call 1,180 Call 4,339 Call 1,617 Call 2,151 Put 1,027 Put 917 Put 415 Put 12/9/22 12/9/22 12/9/22 12/9/22 12/9/22 12/9/22 12/9/22 12/9/22 12/9/22 12/9/22 12/9/22 12/9/22 12/9/22 12/9/22 12/9/22 12/9/22
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An Introduction to Management Science Quantitative Approaches to Decision Making
ISBN: 978-1111823610
14th edition
Authors: David R. Anderson, Dennis J. Sweeney, Thomas A. Williams, Jeffrey D. Camm, James J. Cochran
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